Stocks are bouncing this morning. But that is to be expected.
Every major collapse follows a clear pattern:
1) The initial drop
2) The bounce to test former support.
3) The REAL fireworks.
Stocks are currently in phase 2… as you can see, they have been rallying to “kiss” the 50-day moving average or DMA (see the red circles in the chart below). However, they have FAILED to reclaim it.
If stocks DO NOT reclaim this line right here and now, it’s likely GAME OVER for the bull market.
The whole situation is similar to that of 2008. At that time stocks broke down, then rallied to “kiss” the 50-DMA several times. When they failed to reclaim it is when the REAL fireworks hit.
We recently published a Special Report outlining certain key developments that flash right before every major crash hits.
It’s called How to Predict a Crash and it illustrates what these triggers are currently signaling for the markets… and whether or not the odds of a crash are low, medium or high right now.
To pick up a free copy, swing by
phoenixcapitalmarketing.com/predictcrash.html
Best Regards
