The Shake-Out Continues – Where Is The Bottom?

Smart traders are already asking themselves “where is the bottom for this move”.  They’ve likely been through these types of rotations in market price before and understand the fundamentals of the US economy are strong enough to support further upside price activity in the near future.  The current US/China trade worries could result in a pricing disruption of 4 to 8%, seen as rotation, yet the US Fed is continuing to leave rates unchanged and most US economic numbers are still posting strong levels.

So, smart traders want to know where the bottom in the market is likely to be found and when they should start to accumulate new long positions – which is understandable.  We’re here to help.

Our proprietary Fibonacci price modeling system is one of the unique modeling tools we use to hone into any market move.  The reason for this is because it shows us so much data that we can “read into” our analysis/research.  The other reason is that it is an “adaptive learning” model – which means it continues to learn from price data and adapt its analysis of that data.

Let’s start with the Weekly YM chart.  The GREEN highlighted box on this chart shows where the past two Bullish Fibonacci price trigger levels were generated.  These, obviously, become key support levels going forward.  The narrow ORANGE box near the current peak is the resistance channel we highlighted many weeks ago that suggested a volatility rotation peak may be setting up.  We have also drawn an oblique/circle on the chart in BLUE that highlights upside Fibonacci target price levels.

It is our opinion that a further downside leg, possibly to levels below $25,000, are possible as this Shake-Out continues and as the global markets continue to revalue expectations.  We are watching the currencies very closely as the Chinese Yuan has devalued extensively over the past few days.  This US Dollar strength will keep metals fairly flat while prompting some extra stability in the US stock market over time.

 

This next chart, the NQ Weekly, shows a similar chart format to that of the YM.  Clear resistance can be seen near the recent highs and support is found near the $6600 level from previous Fibonacci Bullish Price Trigger Levels.  The NQ, being very heavily weighted in Technology and Internet stocks, may have the ability to fall the furthest within this price rotation – possibly as much as -700 to -800 pts before finding support.  Currently, a support level near $7400 is the first level we are watching.  If the NQ breaks below this level, then we could see a much bigger move to the downside unfold fairly quickly.

 

Lastly, the Transportation Index (TRAN) is showing us that the downside price move may have already reached a level that may prompt intermediate price support – or a potential base formation.  The $10,400 to $10,500 level, which was already reached, appears to be the initial support level for the TRAN.  It would make sense that the TRAN may begin to base near this level over the next few days/weeks while the US stock market attempts to hammer out a bottom.

Ultimately, the $10,000 level has proven to be very strong historical support for the TRAN.  So any breakdown in this index would immediately prompt a target level of $10,000 for the next support level.  Again, pay attention to the US Dollar and Gold as this movement continues.  Any real fear will translate into a weaker US Dollar and increasing prices in precious metals.

 

In closing, we believe the early signs of a potential price bottom are setting up right now.  This may not be the ultimate bottom, but the clear support level in the TRAN is a very good sign that the markets are setting up a support base that may prompt some sideways trading over the next few weeks as the market continues to digest all this global trade news.  A deeper “washout-low” price formation may set up in the INDU or the NQ over the next few days which means we may see a deeper price rotation before the downtrend actually ends.

Right now, pay attention to our continued research and we’ll help you find the bottom when it forms.  Our current expectations are for a continued downside price move that will establish a washout-low formation over the next 3 to 10 trading days.  We’re not out of the woods yet, but we are starting to see the early signs of price support – which means a bottom may not be too far off.

UNIQUE OPPORTUNITY ONLY IN MAY

On May 1st we talked about the old saying goes, “Sell in May and Go Away!” and that is excactly what is happening now right on queue. In fact, we closed out our SDS position today for a quick 3.9% profit and our other new trade started today is up already 10%.

Second, my birthday is only a few days away and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

Right now I am going to give away and shipping out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. I only have 13 left as they are going fast so be sure to upgrade your membership to a longer-term subscription or if you are new, join one of these two plans, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

I only have 13 more silver rounds I’m giving away
so upgrade or join now before its too late!

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!

Happy May Everyone!

Chris Vermeulen

Bitcoin Setting Up For Another Drop

Last year just days before the big Bitcoin breakdown we notified everyone publicly to get ready for a swift drop from $6000 to $4000 which played out perfectly within a few days. Our cycle system and technical analysis skills combined can pack a powerful punch and this one of those incredible moves where the stars aligned for us as traders.

October 12, 2018 – Post and Chart Here

 

We then further updated our followers in March of this year that a breakout was about to take place and a run to $6000 should take place. After that upside breakout move on April 8th, we posted this video further confirming $5800-$6000 was still the target.

Today/May Bitcoin appears to be setting up a broader top formation that suggests another move lower is about to unfold.

This first Daily chart highlights both support and resistance in Bitcoin.  The Resistance goes all the way back to July 2018 where a Three River Morning Star pattern set up a gap with a Doji Star formation.  This created the support level that was ultimately broken in November 2018.  Support formed near $4000 in early 2019 with similar types of gap formations.  This support level was ultimately broken in April 2019 with a move back up to resistance near $6000.

 

We believe the setup of the most recent price activity is setting up a classic three mountains top formation.  A weak price rotation prompting a downside price move right now could be a short term ultimately top with next support near $5000. We believe a fairly quick downside price move toward the $4400 level (or lower) – near support.

Once price move to near the $4400 price level, or lower, if the support level is broken, we could see the price of Bitcoin fall all the way towards the $3500 level or lower.  Fibonacci price theory suggests the failed high price move, near $7500, would represent a major failed high.  This failure suggests a move lower attempting to establish a new price low.  For this to happen, the price of Bitcoin would have to fall below $3000 which may sound crazy, but so was $20,000 bitcoin!

Watch for a reversal to unfold in the coming days, could be another opportunity to profit from another cryptocurrency collapse. Any failure of this breakdown/reversal move would suggest Bitcoin is setting up a new Pennant/Flag formation where the price will trade sideways before prompting a bigger breakout move.  We believe a price breakdown is about to unfold and we expect prices to fall below $4400 within 14 to 28 days.

If you want to become a technical trader and pull money from the markets during times when most others cannot be sure to join the Wealth Trading Newsletter today. Plus, for a few days only I’m giving away and shipping Free Silver Rounds to subscribers who join our select membership levels.

Chris Vermeulen
www.TheTechnicalTraders.com

US Election Cycle Will Create Increased Volatility​​​​​​​

FREE MAGAZINE

See Page 59
US Election Cycle Will Create Increased Volatility

Throughout recent history, the US Presidential election cycle has prompted increased volatility and price consolidation. This happens because the US Presidential elections are really the biggest change of leadership on the planet for all economies and people. This year, the show is getting started a bit earlier than most…

SEE Pg 59 EXCLUSIVE REPORT

US/China Trade Issues Create SHOCKWAVE Around The Globe

Unless you were following our research, see below, and were already aware of the many warning signs we’ve been posting in our continued efforts to help traders and to help educate skilled investors, you were probably caught completely off guard by the news of near trade tariffs last Sunday, May 5th.  Let’s face it, the short position in the VIX was an indication that institutional and retail investors had gone “all in” on this rally and had failed to even consider anything disrupting the narrow range price rally that had been in place over the past 45+ days.  Well, all of that changed on Sunday night and many traders woke up Monday morning to the INDU down nearly -500 points.

The most incredible facet of this rotation was that the markets had already discounted the trade tariff news and began to rally almost immediately after the opening bell on Monday.  Sure, we are not out of the woods at this time with the potential for continued price volatility and price rotation, but the fact that the US stock market was capable of rallying back from a very deep opening price shows just how resilient the US stock market and the economy really are.  The issue this time, we feel, will be felt in the global market and in foreign currency rates. We’ll get into that more as we continue.

In case you missed our most recent research posts, we suggest you take a few minutes to review the following posts to bring you up to speed with our analysis/research.  Reviewing these posts may help you to better understand the rest of this article and our expectations for the next 60 to 90 days.

 

March 31, 2019: Proprietary Cycles Predict July Turning Point for Stock Market
https://www.thetechnicaltraders.com/proprietary-cycles-predict-july-turning-point-for-stock-market/

 

April 10, 2019: Intra-Day Fibonacci Modeling Shows Volatility Is About To Spike
https://www.thetechnicaltraders.com/intra-day-fibonacci-modeling-shows-volatility-is-about-to-spike/

 

April 17, 2019: US Stock Markets Setting Up For Increased Volatility
https://www.thetechnicaltraders.com/us-stock-markets-setting-up-for-increased-volatility/

 

April 22, 2019: Prepare For Unknown Price Action As New Highs Are Reached
https://www.thetechnicaltraders.com/prepare-for-unknown-price-action-as-new-highs-are-reached/

 

April 28, 2019: Markets Are Setting Up a SHAKE-OUT – Be Prepared
https://www.thetechnicaltraders.com/markets-are-setting-up-a-shake-out-be-prepared/

 

Now that we’ve covered a bit of our past research, allow me to attempt to summarize things a bit.

_ First, we continue to expect new high prices to be established over the next 30+ days.  Yes, volatility will be larger than it was 30 days ago, but we believe the “Shake-out” is just starting and we believe the US stock market will continue to push higher – at least for the next 3+ weeks.

_ Second, we are very cautious of the July/August 2019 Cycle Predictions, see above.  We believe these cycles could be a warning of a major price trend change that prompts some type of “dynamic shift” in the global markets.  Right now, it appears a “Shake-out” in China/Asia may be in play.  But we believe a bigger “Shake-out” may be brewing somewhere else in the world.

_ Lastly, we believe any top formation in the US Stock market will result in a Pennant/Flag formation, rotational top formation, that will give traders ample time to reposition their trades and reduce risks.

Just a few days ago, we posted this research to help traders understand just how close the markets are to topping and what to expect – see below.  We continue to believe this “Shake-out” is more about disrupting low volatility expectations and less about a major market top in the US stock market

 

April 30: How Close Are The Markets From Topping?
https://www.thetechnicaltraders.com/how-close-are-the-markets-from-topping/

 

The Chinese stock markets will likely continue to drop as new expectations are suddenly realized and trade issues, especially IP and future IP partnerships, become a major contention moving forward.  Every step China takes, right now, is very fragile in terms of US expectations and the ability to show the world China is willing to become a responsible player in the technology field.  If China fails to realize this, the world will clearly see that China’s intention is to take as much as they can from global technology leaders while stuffing their pockets full of foreign cash – it will not end well.

The Shockwave that has just started to unfold across the global stock market/financial world is that trade, economic expectations, and currency valuations will continue to “revalue” to address these ongoing concerns until some formal resolution works itself into place.  In the meantime, any new issues that become present could further complicate these “revaluation” efforts.  The concert just started, folks.  We have a long way to go before this is all over with.

This Weekly YM chart showing our proprietary Fibonacci price modeling system is suggesting we have a “long way to go” before we could consider any downside price rotation a major risk.  The recent price highs in this YM chart have prompted a Bearish Fibonacci Trigger Price near the December 2018 lows (see the RED line near the $21,450 level).  You might be asking, “why so low?”.  This “learning modeling system” attempts to learn from price and attempts to identify where key price levels are that MUST be reached for a confirmed trend change.  As price has continued to rotate within a very wide range over the past 7+ months, the Fibonacci modeling system is suggesting that price could fall all the way back to near the December lows WITHOUT triggering a new “long term” bearish price trend.

In other words, the current price range that would constitute “normal price volatility” is anywhere between $21,450 and $26,950.  When we said to expect increased volatility, we really meant it.  This is a $5,500 range in the YM that could become a “normal volatility zone”.

 

The NQ Weekly chart, on the other hand, is providing us a much clearer Bearish Fibonacci Trigger level, near $7,393.  Once the price is able to close below this level, then we would consider the NQ entering a new Bearish trend as long as price stays below the $7,393 level.  If it was to rally back above this level, then the trigger is negated as long as it stays above the trigger level.

Pay very close attention to the YELLOW price channels that originate back in early 2018.  Those levels are likely to play a very important role in going forward as price attempts to establish new price ranges/channels throughout this expected price rotation and volatility.

 

Lastly, we’ve been warning that the Financial Sector could come under some intense pressures over the next 5 to 16+ months as all of this “Shockwave” plays out.  The reason we believe the Financial sector is vulnerable to this crazy volatility is that the exposure to multiple levels of capital risk could complicate the long-term earnings capabilities of this sector.  Almost all of these firms are involved in Personal, Corporate/Business, Real Estate, Trade, Global financing, Currency, and Bond related business ventures.  These firms are not remotely immune to any “Shockwave” – they are located right in the Bullseye/Target zone.

We believe the XLF may come under increased pressure over the next 3~6+ weeks as the Shockwave event continues to unfold.  We believe issues with Personal/Consumer credit will be the first sign of a Shockwave event and further pressures from Corporate/Business/Global/Currencies would likely be the second shoe to drop over the next 8+ months.  We believe a rotation in the XLF to near $25 is very likely over the next 3~6 months and that this move could be the result of extended risk factors originating from the “Shockwave event” we’ve been suggesting is currently unfolding.

Skilled traders should be watching technology stocks, the NASDAQ, the INDU, the Financial Sector and commodity prices over the next 4+ months for any signs that the Shockwave event is increasing in amplitude.  Additionally, pay very close attention to how currencies are moving and where the US Dollar is moving in relation to other currencies.  Gold and Silver should also be on your radar over the next few months as well.  Lastly, prepare for the major cycle event in July/August 2019.

The past four tradings sessions with volatility has kept us busy check out our most recent index trades on the SP500

 

Our advice continues to be to look for opportunities as the volatility increases and continue to expect an upside price bias in the US stock market – at least until we have any strong evidence that price trend has changed.  Don’t buy into the doom-sayers just yet.  In our opinion, this US upside price move is not over yet.

If you want to become a technical trader and pull money from the markets during times when most others cannot be sure to join the Wealth Trading Newsletter today. Plus, for a few days only I’m giving away and shipping Free Silver Rounds to subscribers who join our select membership levels.

Chris Vermeulen
www.TheTechnicalTraders.com

 

Silver Sets Up A Long-Term Wave B Bottom

Precious Metals traders have been hanging on every turn in the markets over the past 2+ years.  The upside price move in early 2016 setup a very strong expectation that further upside price moves were about to result in an upside price explosion in metals.  Remember, 2016 was a very big US Presidential election year.  2020, being the next big US Presidential election year, is only about 7 months away and the rancor has already started in the news cycles.

Our proprietary Fibonacci price modeling system is suggesting that Silver has set up an ABC bottom in Oct/Nov 2018 and has already initiated an A/B upside price leg that should result in a C or C/D/E price advance over the next few months.  Our Fibonacci price modeling system is suggesting an upside price target of $22 per ounce for this move, which breaks the previous July 2016 highs of $21.22.  We believe the ultimate upside target of this next bullish move is bear $28 to $29 based on longer-term Fibonacci price modeling.

Initially, this upside move must break the $16.30 level, which represents immediate resistance.  Then, it must push above the $18.66 level, which represents secondary resistance.  Once Silver passes the $18.66 level, the last leg higher will attempt to break the $21.22 level and push up into new recent highs (higher than the 2016 highs).

We believe the current US Presidential election cycle will be full of twists and turns – most of which will be very public and explosive.  We believe this election cycle will create a certain level of fear in the markets that are above and beyond what we have seen over the past 15+ months.  In a method that is very similar to what happened in 2016, the public will become entrenched in the election cycle process and the global economy may suffer slightly as the political shenanigans continue to play out on our TVs, newspapers and web browsers.

The October/December 2018 lows were, most likely, the lowest price levels we will see going forward.  Additionally, the current price levels, below $15 per ounce, may be the last time we’ll have the opportunity to see prices this low in a number of years.  Our price modeling is suggesting that Silver and Gold will begin a Momentum Base Rally from these lows that may last many years.

If you want to know when we get long Silver next be sure to join our Wealth Trading Newsletter and get our trading signals. In fact, we are giving away and shipping FREE Silver rounds for select membership levels for the next few days.

Chris Vermeulen

Index Trading Signals for Momentum, Swing, and Trend Following

Since 2001 I have been refining my index trading skills and strategies in the hope that one day I would provide a steady stream of trades and income and possibly even be able to automate the trading for me.

Now, 18 years later I have made most of these dreams/goals come true with a robust trading system that makes trading momentum drops and pops, swing trading, and trend following really simple. While it’s not 100% complete, and likely never will be as I’m always working on adapting things work with the everchanging markets, it is something I’m really proud of and excited to share with fellow traders. Over the next month or so I will be pushing to get this new application running for members to watch and receive the trade alerts.

Take a look at this year’s chart of the system which really is incredible, but the rally the market is experiencing is also not the norm in terms of price action.

 

The next chart shows the most recent trade taken this Thursday and the first momentum trade target was hit in less than 24 hours for a quick 2.5% profit on the SP500.

 

To make things even more exciting this strategy works well with high momentum stocks and the most recent trade we took on CPRX we locked in 10% from our entry price as shown below.

 

I am about to launch a new technology product to assist our members like this one explained above, where we can highlight our proprietary price modeling systems complete with all the trade signals (entry, stops, targets). This added analysis and trade signals are bonus value added for our loyal followers.

If you want to stay ahead of these markets moves and find greater success in 2019 and beyond, then Join www.TheTechnicalTraders.com today.

 

EXTRA UNIQUE OPPORTUNITY

First, we typically see stocks sell-off and as the old saying goes, “Sell in May and Go Away!”

So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals.

Second, my birthday is this month, and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter for the first 25 subscribers. You can upgrade to this longer-term subscription or if you are new, join one of these two plans, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

I only have 25 silver rounds I’m giving away
so upgrade or join now before its too late!

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!

Happy May Everyone!

Chris Vermeulen

Interest Rates, US Dollar, Canadian Dollar

UNIQUE OPPORTUNITY

First, we typically see stocks sell-off and as the old saying goes, “Sell in May and Go Away!”

So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals.

Second, my birthday is this month, and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter for the first 25 subscribers. You can upgrade to this longer-term subscription or if you are new, join one of these two plans, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

I only have 25 silver rounds I’m giving away
so upgrade or join now before its too late!

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!

Happy May Everyone!

Chris Vermeulen

US Fed Leaves Rates Unchanged – The Shake-Out Begins

The US Federal Reserve announced today they are leaving rates unchanged based on their latest meeting.  The markets should take this as a sign of relief.  Yet, hear all-time highs and expecting the Fed may actually decrease rates a bit, the market reacted with quiet price rotation near these highs.

The US Fed could have shaken up the markets even more, but we believe this move by the Fed will be interpreted as “Fed Uneasiness” with regards to the overall US and global economy at the moment.  A failure to prompt a rate increase could be seen as weakness by the Fed and uneasiness over the fragility of the US and Global economies.  Once this shake-out settles, the markets will go back to doing what the markets always do – interpreting future fair values.

The $INDU rotated much lower today, ending the day almost exactly at a key support channel level (the YELLOW line).  Further price weakness could push the $INDU below $26,000 fairly easily if the current high price level is fragile and weak.  Price rotation is one of the most basic aspects of all price activity.  The price must rotate in order to establish new price highs or lows.  As volatility decreased over the past 30+ days, it would not be unexpected to see price retest the $26,000 level, or lower, in an attempt to resume a price trend or re-establish price support before attempting another move higher.

 

The move in the NQ today was much broader than the move in the $INDU.  The Technology heavy NASDAQ 100 rotated downward, below the historical price support channel, and is currently resting just above the previous all-time price high near $7724.  Again, the Fed’s inaction may be interpreted as an expectation of market weakness over the next few months.  Thus, traders reacted to this move by interpreting this weakness in the Fed to raise rates by selling.

Overall, leaving rates unchanged may be very healthy for the US and global economies.  The US Dollar continues to strengthen and this shake-out may be just what is needed before the Summer season for the price to continue trending.

We’ve recently warned that the US major Indexes are nearing our Fibonacci upside price targets and that we believe the upside price move may continue for another 20+ days still.  This current rotation may be very short-lived – possibly only 5~10 days of lower/sideways price action before trends resume an upside price bias.  Time will tell.

Overall, our prediction that a shake-out was about to happen appears to be unfolding just days after we made the claim.  Our longer-term analysis is still the same – continued upside price bias as earnings and fundamentals drive prices closer to our Fibonacci price targets before any bigger price reversal may set up sometime in July/Aug 2019.

UNIQUE OPPORTUNITY

First, we typically see stocks sell-off and as the old saying goes, “Sell in May and Go Away!”

So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals.

Second, my birthday is this month, and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter for the first 25 subscribers. You can upgrade to this longer-term subscription or if you are new, join one of these two plans, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

I only have 25 silver rounds I’m giving away
so upgrade or join now before its too late!

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!

Happy May Everyone!

Chris Vermeulen

WATCH FOR A ROTATION OF MONEY OUT OF THE RISK ON ASSETS

Chris Vermeulen, Founder of The Technical Traders joins me to take a look at the overall makeup of money in the markets. With a couple of the major averages hitting all-time highs recently the run looks to be getting a little tired. Chris thinks we could see a general rotation of money into the risk-off sectors for investors looking for depressed areas. Pay close attention to the time frame Chris outlines though.

LISTEN TO AUDIO TECHNICAL ANALYSIS

Learn more about Chris’ Wealth Trading Newsletter Today – Click Here

How Close Are The Markets From Topping?

Now that most of the US Major Indexes have breached new all-time price highs, which we called over 5+ months ago, and many traders are starting to become concerned about how and where the markets may find resistance or begin to top, we are going to try to paint a very clear picture of the upside potential for the markets and why we believe volatility and price rotation may become a very big concern over the next few months.  Our objective is to try to help you stay informed of pending market rotation and to alert you that we may be nearing a period within the US markets where increased volatility is very likely.

Longer term, many years into the future, our predictive modeling systems are suggesting this upside price swing is far from over.  Our models suggest that price rotation will become a major factor over the next 12 to 15+ months – headed into the US Presidential election cycle of November 2020.  Our models are suggesting that the second half of this year could present an incredible opportunity for skilled investors as price volatility/rotation provide bigger price swings.  Additionally, our models suggest that early 2020 will provide even more opportunity for skilled traders who are able to understand the true price structure of the markets.  Get ready, thing are about to get really interesting and if you are not following our research or a member of our services, you might want to think about joining soon.

We are focusing this research post on the NQ, ES and YM futures charts (Daily).  We will include a longer-term YM chart near the end to highlight longer-term expectations.  Let’s start with the NQ Daily chart.

The NQ Daily chart, below, highlights our ongoing research, shows the 2018 deep price rotational low and the incredible rally to new all-time highs recently.  The most important aspect of this chart is the “Upside Target Zone” near the $8040 level and the fact that any rally to near these levels would represent an extended upside price rally near the upper range of the YELLOW price channel lines.  We believe any immediate price rotation may end near the $7500 level (between the two Fibonacci Target levels near $7400 & $7600) and could represent a pretty big increase in price volatility.

 

This ES Daily chart highlights the different in capabilities between the NQ and the ES.  While the NQ is already pushing into fairly stronger new price highs, the ES is struggling to get above the Sept/Oct 2018 highs and this is because very strong resistance is found between $2,872 and $2,928.  It is very likely that the price volatility will increase near these highs as price becomes more active in an attempt to break through this resistance.  It is also very likely that a downside price rotation may happen where price attempts to retest the $2,835 level (or lower) before finally pushing into a bigger upside price trend.  The Upside Target Zone highs are just below $3,000.  Therefore, we believe any move above $2,960 could represent an exhaustion top type of price formation.

 

This YM chart is set up very similarly to the ES chart.  Historical price highs are acting as a very strong price ceiling.  While the NQ is already pushing into fairly stronger new price highs, the YM continues to struggle to get above the Sept/Oct 2018 highs and this is because very strong resistance is found between 25,750 and 27,000.  Please take notice of the very narrow resistance channel (BOX) on this chart that highlights where we believe true price support/resistance is located.  We believe it is likely that a downside price rotation may happen where price attempts to retest the $26,000 level (or lower) before finally pushing into a bigger upside price trend.

 

As you can tell from our recent posts and this research, we believe price volatility is about to skyrocket higher as price rotates downward.  Our predictive modeling systems are suggesting that we are nearing the end of this current upside move where a downward price move will establish a new price base and allow price to, eventually, push much higher – well above current all-time high levels.

We’ve issued research posts regarding Presidential election cycles and how, generally, stock market prices decline 6 to 24 months before any US Presidential election.  We believe this pattern will continue this year and we are warning our followers to be prepared at this stage of the game.  No, it will not be a massive market crash like 2008-09.  It will be a downside price rotation that will present incredible opportunities for skilled traders.  If you want more of our specialized insight and analysis, then please visit www.TheTechnicalTraders.com to learn how we help our members find success.

Lastly, we’ve included this Weekly YM chart to show you just how volatile the markets are right now.  Pay very close attention to the Fibonacci Target Levels that are being drawn on this chart.  The downside target levels range from $16,000 to $21,060.  The upside target levels range from $30,000 to $32,435.  Top to bottom, The Fibonacci price modeling system is suggesting a total volatility range of over $16,000 for the YM Weekly chart and this usually suggests we are about to enter a period of bigger price rotation and much higher price volatility.

 

Right now, we suggest that you review some of our most recent posts to see how we’ve been calling these market moves, visit www.TheTechnicalTraders.com/FreeResearch/.  It is important for all of our followers to understand the risks of being complacent right now.  The markets are about to enter a period of about 24+ months where incredible opportunities will become evident for skilled traders. If you know what is going to happen, you can find opportunities everywhere.  If not, you are going to be on the wrong side of some very big moves.

Chris Vermeulen