A Scary Stock Market Chart Prediction

Here’s an ugly stock market chart prediction you might want to consider in planning your trading and investments.

This monthly chart makes the current action look like something from a horror movie, The Death of the Zombie Bull, bringing horror and destruction to millions of investors.

Or maybe not. I’ll just show you the chart and let you decide. Scary Stock Market Chart Prediction

I have pointed out the long term trendline above 3020-30 several times in recent months. As August begins we’re looking at the potential for the third rejection from that line. Let’s see where we are in a few weeks.

Meanwhile, long term momentum, at the bottom of the chart, is on a sell signal. It’s also on the verge of breaking a trendline from the 2009 low. Sure these might be false warnings. They have been before.

But when viewed in terms of the age of this cycle, and the breaks of the long term price trends, do you want to bet that these are false signals?

I sure don’t.

I cover the daily and weekly charts with short term, intermediate, and long term price projections, and suggested short term SPY option trades in my Technical Trader reports. I’ve been following and reporting this inflection point for the past several weeks as it unfolds. Is this the end of an era, or just a fulcrum? We’ll know soon.

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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