Posted on 10/12/2016 6:49:29 PM PDT by Enlightened1
HSBC's technical-analysis team has thrown up the ultimate warning signal.
In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he had become on "RED ALERT" for an imminent sell-off in stocks given the price action over the past few weeks.
Gunn uses a type of technical analysis called the Elliott Wave Principle, which tracks alternating patterns in the stock market to discern investors' behavior and possible next moves.
In late September, Gunn said the stock market's moves looked eerily similar to those just before the 1987 stock market crash. Citi's Tom Fitzpatrick also highlighted the market's similarities to the 1987 crash just a few days ago. On September 30, Gunn said stocks were under an "orange alert," as they looked to him as if they had topped out.
And now, given the 200-point decline for the Dow on Tuesday, Gunn thinks the drop is here.
"With the US stock market selling off aggressively on 11 October, we now issue a RED ALERT," Gunn said in the note. "The fall was broad-based and the Traders Index (TRIN) showed intense selling pressure as the market moved to the lows of the day. The VIX index, a barometer of nervousness, has been making a series of higher lows since August."
Gunn said the selling would truly set in if the Dow Jones Industrial Average were to fall below 17,992 or if the S&P 500 were to dip under 2,116. The Dow closed at 18,128 on Tuesday, while the S&P settled at 2,136.
"As long as those levels remain intact, the bulls still have a slight hope," Gunn said.
(Excerpt) Read more at businessinsider.com ...
Not being helped by the blazingly strong USD. Dollar strength has been insane last few days.
For long term 401k investors under 55, it makes no sense to try and time the moving of funds, in my opinion.
Through all the ups and downs i think it is still averaging 7 percent a year.
Remember when the dow was a few thousand :)
HSBC, that’s the dope bank where Jessica Lynch had Comey installed as a director until his FBI door opened up.
More propaganda.
It’s circular and self fulfilling. The dollar rises, stocks fall, further strengthening the dollar, which puts additional pressure on stocks. Thing is, this is LONG overdue.
Getting ready to dump the market when Trump wins?
I agree with you.
Over the long haul things average out.
The market can’t and won’t go up forever.
Frankly, I have no idea how the market rose this high in light of the economic stagnation and unemployment.
and oc course, the incoming Democratic President will need a blank check to “fix” everything...again.
What’s worse-Business Insider or Gateway Pundit. I gotta know.
Me too.
I also remember my father losing everything following this technical analysis crash-any-minute crap in the 90s, when the momentary success of the tech boom was there for all to see....
The average savings, of those who have any has dropped more than 50% due to the dilution with more paper.
Currently, the next best place is paying down debt, saves on the interest charged, but it is not sexy, and with minimal risk, far less volatility, and possible profits, for those who like the risk.
I remember back in the mid-60s when the DJIA was approaching 1,000 and everyone was itching to see it break through, but it fell back and didn’t break it until Nov. 1972. Then it dropped back down and didn’t break it again until Nov. 1980. Anyone recall what happened in those two months aside from the DJIA?
We’re still earning 5- 5.5 percent on stocks.
Mutal funds are doing less but they have most of our investments.
I’m short the market, but certainly not based on Elliot Wave Theory. Folks like HSBC have ‘way too much to gain by leading people around with their “predictions.”
Ditto...Carrie Fisher was smokin' hot.
Bingo. A recipe for a big fat bubble.
Bears watching. Some if’s there.
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