Last week SPX appeared to complete an abc sideways correction. By Friday the index was heading back towards its lows and ended the day and the week just above critical support at the confluence of the 200 EMA and the uptrend from March 2009. The setup is for a potential gap below this support zone on Monday, which could then trigger sell stops leading to a cascading decline.
Commodities continued to lead to the downside, with Crude breaking lower and the Agriculture and Grains…Continue
Added by Steven Vincent on June 26, 2011 at 8:00pm — No Comments
There are significant signals in the current market that a crash or meltdown scenario could unfold sometime in the next 1-2 weeks. Crashes are rare events and nearly impossible to predict, but many elements that could combine to produce a financial market calamity appear to be present at this time.
The video below reviews the current technical condition of the major world stock markets. In it I examine each index in terms of the relationship between price and the uptrends from March…Continue
Since the February high, market participants have been subjected to a stream of weak and worsening fundamental economic data. In the last week since the June 1st high, this trend appears to have…