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Odds Of A Stock Market Crash Are Increasing…

Thursday, May 5, 2011 3:52

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The market isn’t bouncing like I thought it would, and the daily chart is turning down hard. This all increases the odds of a stock market crash happening by the end of this week or even into next week.

(to watch on youtube: http://www.youtube.com/watch?v=pVCW9Zpra5Y)

There is the erie feeling that the release of the death of Tim Osman (aka… Osama Bin Laden) who has been dead since 2002 and put on ice until such time that the release would benefit the gangsters was done at this time period for a reason. It smells of distraction too me! Do they plan to pull a fast one and do another “Flash Crash” while the media is focused on something else? Let’s also not forget that the Legatus meeting is over now, and a turn in the market did indeed start this week. So how far will they take it down is the question?

Will it just be a small pull back and another run higher to the FP on SPY of 138.86, or is that something that won’t be hit until later this year… meaning that a top is current in on the market right now. I’m starting to lean toward a much larger sell off over the next few days, as things just don’t feel right. It seems everyone is looking for another push higher right now, as we did backtest the breakout level from the inverted head and shoulders pattern today. I also see that the measured move up from a successful breakout on that pattern should push the market up to the 1440 spx area.

But, what if the breakout was a “fakeout”?

Yes, it’s looking a lot like we will continue down tomorrow and Friday too I believe. The angle that the daily chart is rolling over at is very steep, and it’s not looking like it’s going to stay above the zero line on the MACD and Histogram Bars. This spells major trouble for the bulls. I think a lot of bulls are going to get trapped long tomorrow when the short term charts get quickly overbought and roll over into another wave down.

Even the die hard bears might be sleeping and not see this move coming. I think that the bears are now looking to exit any shorts that they had and are expecting a big bounce from this support area that the market is current in right now. However, the problem is that the short term charts are moving up fast from oversold territory and will become overbought early tomorrow morning. Not good for bulls if they want to stage a rally at this level. I just don’t see it going very far right now.

The bottom line… we could have another Flash Crash!

Once the 30 and 60 minute charts peak and get overbought tomorrow, they should roll over with a vengeance and have the daily pushing them down hard and fast too. This makes for a “Wave 3 or C” in Elliottwave theory. I just can’t see a the market overcoming this chart conditions, as well as the fact that the dollar and vix are now breaking out to the upside as well… which trade inverse the market.

For now, I think the SPY FP is out of the question and the short term top is in. Maybe later this year the FP will be hit, but right now I think the trend is down. I don’t know how far down they are going to take this, but it should clearly make the inverse head and shoulders pattern breakout a “Failure”. This should happen tomorrow I believe, and most likely the rally will end early in the morning and we should rollover into the afternoon and close. We might not make it even the first hour? Hard too say for sure, but the 60 minute chart is moving up very fast. It will be overbought in the morning session tomorrow. The 30 minute chart is already above the zero level and could rollover at anytime.

So, the ABC move that I was looking for today should now happen Thursday morning. I think we already started the A leg and possibly the B leg into the close Wednesday. That leaves the C leg up tomorrow and then she rolls back down hard into either a wave 3 or C… nasty, either way! The charts don’t lie, and right now they are very bearish. Yes, the charts can be (and are) manipulated by the wallstreet gangsters, they don’t seem to want the market to rally right now. Get ready for a surprise gang, as I think a lot of bears will miss this move.

Red

To get the latest updates, visit the site and read the intraday comments. Most posts also include video’s of the forecasted market direction.
Odds Of A Stock Market Crash Are Increasing… was first posted on May 4, 2011 at 10:57 pm.
©2011 “Red Dragon Leo – Stock Market Trading on the Darkside“.

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Comments

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Anonymous

I’m almost certain someone at the exchange will hit an s instead of a b when the timing is right, and I’m certain that all the trained idiots will believe it was just an accident. I will be glad when the stock market crashes and burns, it is nothing but a den of corruption and thievery that has robbed American’s of their country and their wealth along with the other bankers. There hasn’t been a free market in the USA for 25 years and all of you who have supported it and allowed the fraud to continue out of your own greed are just as guilty, that’s the problem in America, all of you have sold each other out for greed and the buck, from the law enforcement level which is nothing more than a tool of revenue collection, to the courts of injustice which heads the revenue collection agency, right along to the corrupt politicians that you have allowed to bankrupt and sell off your country out of your own stupidity and your worthless vote. Your sick voting so far has destroyed the USA, it is broke, and hated among the world for your greed and the destruction of others to get what you want, and then there are the bankers and wall street which is the head who runs it all, and all of you traders and brokers have supported them to the destruction of your own country and your fellow humans.

God destroyed the last civilization because it had become just as evil and corrupt as you are now, and satanist and atheist thinking won’t save you, only in your demented minds, you have basically destroyed yourself and much of the rest of the world out of your own greed, you have consumed 90% of the worlds goods on credit and what you did pay for was with worthless fiat paper, when you couldn’t get what you wanted from other smaller countries, you blew them to hell with bombs, and genocided them so the bankers and corporations could get richer, you believed their lies, and killed for them and you got the blood of your sons and daughters scattered all over the world to show for it and your homeless and messed up veterans but you pretend you did the world a great thing, you have to in your mind see it as defending America, see it as heroic, but one day you will have to face the truth and it wont be easy, you have been nothing short of a warrior nation, taking what you wanted out of your own greed, you started in America by slaughtering the natives and then moving from first one place and then another, demonizing and slaughtering as you went, but your day of judgment is at hand, you will now reap what you have sowed, the pain you have inflicted on others is coming home to you and yours, the world will be glad to see you gone, you have been a thorn in the side of this planet for hundreds of years, you allowed satanist to take you over and use you for every filthy and perverted thing, now suffer your just reward and do it in silence when it comes knowing that you have created and deserve your own judgment that you created for yourself and don’t blame God out of your own ignorance, blame yourself, your greed, your violent nature, blame yourself because you allowed satanist to steal your identity and your spirituality. Decent humans, the planet, and God will be glad when you are gone.

May 5, 2011, 7:39 am 0 Reply

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