Loading ...Behold a potential Market Crash
GDX is being ruled by INDU/SM
Here an update on Dow Jones Index (INDU). INDU did spillover the 2 FORKS but rejected a BO-UP. Right now INDU both has HOR.SUP as well with dMA(150) and dMA(200) as support which is just 1% lower. Although three times a charm and INDU could bounce-UP here . . . but if dMA(200) does not hold, a FLUSH LOWER can be expected – possibly next week. INDU BREAKING THIN ICE?
If FORK are correct and INDU BO-Down … FORK Support for INDU comes 10% LOWER ! That is a SUDDEN crash folks but SEC has informed us, such is NORMAL 😉
Below same INDU-chart but presented as a Line Chart with GDX (blue) overlay.
As GDX are stocks (like SM), the conclusion of this line chart is, that GDX in general follows SM only to either extend the UP/DOWN move. So, IF INDU BO-DOWN the above presented BLACK DASHED Support line, GDX will follow.
We are possibly watching MARKETS in CRASHMODE. Be careful my fellow Tenters. When holding GDX (or alike), it might be helpful to hedge your GDX-bets. GL.
IMO. DYODD.
“Behold a potential Market Crash”
Yes, but emphasis on potential.
Crashes occur from OS conditions, and we have those.
EW is looking for a final snapback rally in the to “B” wave rally I’ve been discussing for several months. Its hanging by a thread here, to your point.
The VOL etfs have been NOTABLY complacent this whole time.
If we get the “B”, the C for Crash wave simply gets delayed.
Correct Pedrodeleon, so far I see a lot of delayed price actions in many charts which IMO looks pretty much like Ai unless I see ghosts. And ‘hanging by a tread’ is why I made this POST. Surely 200dMA can make INDU give another rally or snapback. But what if it does not as your charts are LT based eg. based on weeklies . . . I guess we know next week.Possibly the weekend creates a LABEL … one never knows what next SWAN looks like.
100% agree with this assessment. The fact is, silver for example, thanks to the huge run it just had, has a TON of air now underneath it to extend losses extremely quickly in the near term. I’m basing this mostly on the 20 week bollinger bands.
At this point, I am expecting silver to at least retest the low from last year (basically the 400 WMA), and in a real panic could easily retest the 2015 low. I am NOT expecting silver to take out the 2020 low, but anything is possible at this point.