S&P 500 bounced off of 2440 with the futures taking out 2400 nominally last night. The all-time high was 3386. The financial crisis of 2008 fair market low was 665 and I won’t even list the real number because I don’t like it but it’s close enough. S&P 500, NASDAQ and Dow we’re up 10% in a day. The Dow industrials up or down over 1000 points every day this week. The volatility index reached its highest level in decades and the fourth highest ever at The 80 level. FX all over the place. Crypto crashed… Again. Interest-rate’s about to go negative or at least zero. With all of this going on, the founders of Amazon.com, Microsoft and Google all decide to retire officially from their respective companies they started in the past 90 days. With the announcement of Bill Gates leaving, all of the pioneers of the modern technology world will No longer be around. Interesting…
From the Harmonic perspective, we see a sharp 88.6% retracement that yielded quite a bounce. However, the follow-through of the coming two weeks will be tremendously important to the severity of this long-term though. For now, a boune in order. However, this current societal crisis is much Like the financial crisis of 2008 were the facts do not matter because people are responding to other peoples overreaction. Of course, the market was right to give back the Gains of last year. What about the last 10? Why would 2020 not be any different than 2010 for 2000? Most of the same general conditions of excess and saturated debt levels Can no longer continue the long-term party. What is the government going to do? Bail out the cruise industry? LOL. They just announced that there will be a two month hiatus in cruises out of Miami. Again, I am not minimizing any of the real risks rather I am looking at the larger picture With Harmonic measurements in hand.
. In recent YouTube and gold member discussions, I have talked about weekly charts in Disney and Amazon.com with massive patterns on the weekly and monthly basis that were perfect type two bearish Set ups. From a longer-term perspective, these patterns are signaling something larger has topped out for now. In fact, Amazon still has another 200 points until it hits its target 2 Objective. Meanwhile, many exotic FX pairs are going nuts. Take a look at BRLUSD among many other South American pairs.
I have spent many decades following the markets, trading the markets, talking about the markets, talking to other people about the markets and finally writing about what I feel and think about the markets. I think and feel that this might be one of those times were larger measures and historic harmonic measures must be considered. Therefore, I would like to share the following with everyone. No serious bullish continuation of any market sales it’s all time 38.2% retracement. This is called the 38.2% trailing stop for 382 trailer. For the Dow, NASDAQ and S&P 500, these levels are not too far off. The Dow is around while the NASDAQ 38.2% monthly retracement sits at 6200 approximately and The S&P 500 at 2350, if you really want to be concerned about the market it would be a violation of these levels there’s another reset would be the only option and the third time in the first 20 years of the century. No matter what, there will always be plenty of time to take advantage of opportunities in any market environment. And, it is never a good result when being over excited or feeling down over a trade. You win. Good. You lose. Good. You continue trading. Good Harmonic trading. Great. Stick to the Harmonic pattern framework. The numbers are clear if we’re dealing with a larger situation , This is absolutely a time to take stock and think about what has transpired over the past several weeks.. Have a great weekend everyone.