During turbulent times within the markets I usually get calls from friends and others about what I’m watching or how I view any recent turmoil. It seems that once again we are experiencing one of these times. So for the sake of brevity below are two charts. The first is to bring new readers up to speed on why I’m stating, what I’m stating, along with providing some relevant backup for my argument. You can find my arguments here and here for more context. For those who’ve been with me for a while and understand the first chart – just skip to the second and I’ll illustrate my view as of this writing.
You can see on the above chart where we were in Nov. of last year just under 60 days ago. Below is a chart current as of this writing with about 3 hours left before the U.S. markets close.
As you can see I’ve now added 2 grey ovals. The first is where we are today. You’ll notice it stops where I’ve inserted 2 lines this represents a previous gap. That is an important sign to traders who understand “technicals” and such. The market fell and retraced as of this writing precisely at this point. If it breaks through this area I feel we’ll have a watershed type event down to the lower oval which coincides with the now bemoaned “Bullard Bottom.” Lose that level, and “all bets are off” in my opinion.
This could happen in a day, a week, a month, and even overnight. Currently it’s anyone’s guess. So with that said, hopefully, you that are reading this are part of the very few that understood why I argued for diligence concerning the volatility, as well as fragility of these markets that the so-called “smart crowd” along with the “experts” told you was nonsense – and have long ago moved your thinking or business interests (and or money) to safety.
I truly believe we are now entering the event horizon of: Interesting times.
© 2016 Mark St.Cyr