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Is the Stock Market About to Drop? This Chart Says “YES”

Stock-Markets / Stock Markets 2019 Jun 25, 2019 - 11:08 AM GMT

By: Graham_Summers

Stock-Markets

Sometimes it’s good to take a big picture look at the stock market.

By “big picture” I mean a monthly chart that is at least three years long.

Here’s one that caught my eye over the weekend.


This is the S&P 500’s monthly chart going back almost four years. The key items to note are:

1)   The MACD, a key momentum indicator, is on a “Sell” signal (blue circle).

2)   The RSI, another key momentum indicator, shows negative divergence (purple line), with each new high established by the stock market coming on a lower RSI reading.

3)   The stock market itself is in a massive megaphone pattern… with the ultimate upside target only slightly higher than where stocks trade today.

Take these three items together and you’ve got… TWO signs that momentum is fading, right around the time that the stock market is nearing the end of a major technical pattern.

This tells us, that as exciting as the recent rally in stocks has been… we need to look out. At the very least, stocks should see a correction down support at the red line.

If that line doesn’t hold, we could easily see a drop to the low 2,300s.

This would mean…

A Crash is coming… It might not be this week… but the signs are clear… and I wouldn’t ignore them…

Those investors who take the right steps to prepare for this, will make literal fortunes.

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

Today is the last day this report will be available to the general public.

To pick up one of the last remaining copies…

https://www.phoenixcapitalmarketing.com/stockmarketcrash.html

Graham Summers

Phoenix Capital Research

http://www.phoenixcapitalmarketing.com

Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and unde74rvalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.

Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.

© 2019 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Graham Summers Archive

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