Very high chance US markets (S&P500) will collapse from here (2910-2920) ... expected decline anywhere from 20-50%
First trend line (on smaller time frame) broken. Now rejecting near smaller time frame trend start.
Rejecting at trend start on larger time frame after losing trend Dec 2018
Smaller time frame short possible!
May precipitate bear market with...
Gold is at high place, bearish trend is still in force
2) at daily structure (start of bearish move)
3) Bearish AB = CD completed
4) Kiss of death on monthly trend line
5) Just broke hourly trend line
6) Forming daily pin bar
7) US Dollar is strong, SPX may rally to broken structure
8) Daily RSI overbought
9) Daily stochastics very high
Trend broken,0.618 trade likely. Looking at previous weekly fractal
for clues suggests entry at 0.618 with 2.5:1 risk:reward ratio
US dollar is currently falling but should reverse
this is somewhat worrisome
Either consolidation or have been in bear since Oct 1st 2018. Based on prior action, a bounce will likely retest 100w MA from below. If it is acting as resistance: short for 25%+ expected decline from that point.
For consolidation, need more time to pass = more information. RSI top trendline break may signal resumption, whereas bottom trend line break may signal...
Technical + fundamental reasons to go long. Trump and Xi agree on a trade truce while further negotiations proceed. Market needs this kind of news to reduce uncertainty of reduced profits in future and get people to buy.
Oil has retraced 50% from the lows. $50 is an important psychological level. There's a nice trend line to break. And a clear consolidation. + a decline with no significant retracements.
Momentum is stalling to downside. Plus much support. Taking a short trade at this point is undesirable