The next market crash is nearhello everyone, its been some time since i last posted but i want to post a market update and warn investors/ traders around the world about a near market correction/recession.
for some months already we have seen markets hit ATH back to back showing great market strength and a very bullish trend. i do think this will continue for a bit of time or continue into a range before having a final pump up to another ATH as shown in the charts below.
first i will start off with the patterns that was seen before the 2008 recession.
as we see in the chart from 2008 we enter what i call "the final range" here is where we see markets ranging right at all time high or near it right after a strong bullish movement. after this range we can see markets enter the "final pump up" zone where we see the markets give off the final movement up which usually is the strongest move out of any previous movement in this cycle. typically when you see a market pump up the last candle before a strong sell off is usually a strong pump up.
now looking at these patterns from 2008 we will see how similar the compare to the ones from 2020.
this chart from 2020 we can see a similar pattern forming like we did in 2008.
first we enter that ranging zone near all time highs for a bit of time before entering into a not very strong push up but it did break this zone giving us new all time highs. after that we enter into a sell off phase.
now looking back at these two instances we will look at how they compare to todays market and what we can expect in the upcoming months/ years.
looking at todays market we can see markets are right about all time highs but due to it reaching a important fib level i do think that it is perfect set up for the market to start ranging in this zone as we saw near the 1.68 fib level. here is where i think we will see the final range before we get a final pump up.
taking a fractal back from around 2018-2019 and placing it on the patterns forming in todays market as we see below:
here we can see how similar the fractal and todays market look. i think this is a very important confirmation supporting my claims.
that being said that is not the only thing supporting my idea. next i will show you the yield inversions and what patterns are forming and what they all had in common before a market crash.
in this chart we see the 10 year 2 year yield curve chart. now this chart is very important because before any major crash/ recession usually we see a inversion between these two.
markets don't usually correct right after it inverts but looking at the chart we can see that once it reaches .7-1.0% that is usually when the market tops off and the start of the recession starts.
we seen this happen in 1990, 2001, 2008, 2020, and now present day we see it coming real close to those levels right after a inversion meaning we could be soon see a market recession coming extremely soon after the final steps of this cycle are complete.
in my personal opinion i think markets could reach levels up to 50-60k before selling off but after that i do think a significant market crash will occur.
