Wednesday, June 26, 2019

Let's wrap up these megaphones into July 4th

Mnuchin has suggested that the USA and China are close to some sort of trade agreement, and maybe we are.  If they manage to save face here with something, it still won't save the next dozen Baoshang Banks that some down the pike.  The Chinese banking system is beyond insolvent.  But it will rally the markets to new highs.



We have this smaller, local megaphone.  It's in five waves, although the third is the shortest -- hardly an "impulse" wave.  It's one of those very bearish expanding ascending wedges my old friend Lunatic_fringe used to hunt.  Timing is good into the July 4th holiday.

S&P 500 hourly

And here's the big megaphone.  The S&P 500 really wants to tag that area right over 3020.

S&P 500 daily

And then it's just a matter of how quickly this implodes.

S&P 500 doom series


8 comments:

christiangustafson said...

Trump's a dumpster fire lately with the border and DHS flying illegals all over the place. I almost said, "country", but that's questionable. Can't wait to see how Donald handles bubble equities losing 2/3 their face value.

John said...

Lately??!!

christiangustafson said...

If Trump is going to rally his base ... AND the markets have gone south ... he is going to have to do all the things, but fo real.

And he also will be forced to conduct scorched-Earth open war with the socialists, releasing documents, declassifying all sorts of interesting documents, directly to the people.

The 2020 election will be turned up to 11.

John said...

https://deep-throat-ipo.blogspot.com/2019/06/how-ineffective-bill-becomes.html

Speaking of scorched.

Lady S said...

Wave 3 short then wave 1?

Lady S said...

Don't you think it's ABC?

Randall Beehomes said...

Fireworks on way

christiangustafson said...

The middle of the channel is right at Tuesday's close, SPX 3025.

FWIW, tomorrow is also a New Moon.