The 'Tide' has Turned... NEGATIVE for STOCKS!!!

By: Chris Vermeulen | Wed, May 18, 2016
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Currently, a 'sharp fall' is now anticipated within the equity markets! This decline will be accompanied with 'new volatility'. There is a great deal of 'uncertainty 'within the U.S. markets. Currently, we are viewing a 'textbook' 'head and shoulders pattern' in the SPX and is going to be a big inflection point we look back on months from now.

There are less and less stocks that are participating in the recent move upwards which suggest a technical breakdown is likely to happen.

S&P500 Daily Chart

The 'cycles' of the SPX have recently confirmed that we have now witnessed the 'highs'. The 'top' is currently in place and I expect that the 'negative trend' will continue to persist.

See my live analysis charts and forecast click here

The 'smart money' has been exiting the equity markets during the last few weeks with strong waves of selling volume taking place on a consistent basis.

Yesterday morning, Monday, May 16th, 2016, I alerted my subscribers to two new positions to enter into so as to take advantage of during this next significant market move and change in volatility.

Consequently, consumers have already started to slow down in their spending. They will change their past behavior, and, as a result, will begin to save (whatever funds that they may still have) as stocks start to fall in value along with the average investors retirement accounts. The present day spending behavior will come to a grinding halt in due time!

Before "The Great Credit Crisis of 2007-2008", the 'smart money' exited the equity markets in November of 2006. And it appears that the NDX-100 and the Russel 2000 are leading the 'charge' downward once again for the pending market correction.

We are, once again, repeating this same technical pattern, now!

S&P500 Bullish Percent Index Monthly Chart


Concluding Thoughts:

In short, the first chart I showed in this article paints a very clear picture of where stock prices are headed - Lower.

Large cap stocks over the past year have been making lower lows and lower highs. The most novice of traders knows what that means... It means, we are in a down trend.

There are many ways to take advantage of what is about to unfold next, but how you play it really depends on how much money you have to play with and the level of risk tolerance you have.

 


I share a few ways I am taking advantage of this with followers of my newsletter at: www.TheGoldAndOilGuy.com

 


 

Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

10126 Hwy 126 East, RR#2
Collingwood, ON, L9Y 3Z1

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

- Interactive Brokers
- Trade MONSTER
- MB Trading
- OEC OpenECry
- The Fox Group
- Dorman Trading
- Vision Financial

He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

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