Technical Analysis Of The Next Market Crash
As you may remember from a previous post that we at StocksForexFutures believe that a significant market downturn is coming in 2016.
It has become clear to not only us, but our friends at K Capital Advisors as well.
Please read the exert from their latest newsletter for some details of the technical analysis done to further back the probably of a market downturn.
“[…]right now, the DOW chart below is pretty scary.
The continuing market highs since 2009 have been great to trade but now I’m fearing the end is near and a bear market could be upon us. As the chart at the bottom of this email clearly shows, we’re approaching some very bearish telling technical points:
- the 200EMA has been breached and never recovered on high volume
- the retracement in the summer of 2015 bounced back but never made new highs
- the 20EMA-50EMAs are continuing to trend downward in a 5 wave pattern
- market sentiment is starting to weaken fundamentally
Are we worried though? Hell no. We have plenty of short scans and watch lists to make money on the way down.”
Hope it helps team,
William