Stock Market Crash Finally?

A lot of people been talking about stock market crash since many years ago when we know that economy not been doing well. However, these bears have been proven wrong many times. Even when the Federal Reserve stopped it's quantitative easing effort, the market kept pumping up.

Last night, we saw a single day drop of 400 points in Dow Jones Index. Hang Seng Index, driven up by Shenzhen-HK linkage, was driven up to close above 24,000. However, when most stock indexes dropped overnight, the Hang Seng Index didn't keep up it's gain but closes below 24,000.

In this article, I am going to inspect few indices to see if it is indeed heading to a drop (I won't be looking for crash). Most important, to find trading opportunities to make money.

These are indexes that I am analysing:

  1. Dax 30
  2. FTSE 100
  3. Dow Jones 30
  4. Nasdaq 100

If you like to receive in-depth analysis in future, please join the mailing service below.



Germany Dax 30

Dax 30 reached a very important resistance level 10800 which I have been sharing in TerraSeeds BP/4M classes. At 10400 then, I would be looking to buy, at 10800 now, if price shows a reaction, I am interested to assume price is resisted.

Price formed a chart pattern - double top.

Base on Tflow® Analysis, price has triggered a 1234 pattern in lower timeframe. More will be written in The Alien Room.

Various support levels I'm looking - 10,000 (round number), 9800 and 9500 on mid term movement.
From TH Box Theory, there's a sell signal already.

Dax at very important resistance level
Dax at very important resistance level

 

Box Theory shows first sign of bearishness
Box Theory shows first sign of bearishness

 


FTSE 100

UK FTSE 100 is probably the strongest of all. Price on current momentum is still up, however price came to a strong resistance at 6900 as marked.

There are a couple of supports coming up - 6600 and 6500. Unless I get a sell signal near to high of 6850, otherwise, will probably pass this trade.

Key level to note is 6500. If price can trade below this level, then next support will be 6250.

FTSE 100
The strongest index of all

 


Dow Jones 30

The sparkling technical point of Dow Jones is the wonder wash and rinse that was confirmed when Dow plunged 400 points last night.

What is wash and rinse? You can read it here. It's a very powerful concept that allows you to really short at real high or buy at real low.

The 400 points plunge in Dow Jones washed and rinsed:

  1. Previous high 18350
  2. Recent high 18080
  3. Equidistant Channel (ED)

From technical analysis point of view, it also formed a bearish divergence in MACD.  In lower timeframe (day chart), there is a reversal chart pattern - head and shoulder.

Support at 17500 and 16200 for mid-term perspective. I am planning for a low risk re-entry sell in The Alien Room.

Dow Jones 400 points plunge
Dow Jones washed and rinsed various key levels

 


Nasdaq 100

Shorting the Nasdaq is against the trend. However, our strength lies in trend reversal. From TH Box Theory, there is a big move formation.

The benefit - if you got it correct, price might travel all the way down to the bottom of ED. That's like 4000?

It's too early to say price will go to 4,000. There are 2 support levels to note: 4,500 and 4,400.  When these 2 levels are broken, then maybe 4,000?

Nasdaq 100 will stock market crash?
Resisted at top of ED

Nasdaq big move setup
Big Move Setup

 


Will there be a stock market crash?

From all the analysis, my answer is no (at the moment). This is probably just a start of a movement. If the market is pent up to fall, then the huge fall last night will trigger lots of attention from bears. Momentum gathers and trigger more selling. This is a great opportunity for trading because prices have been trapped in a tight range for the last one month.

I will be writing a series of analysis on market indices and how The Alien Room members could use it.

Additionally, there is one currency that tracks indices very well. It is possibly setting up for a bigger movement. Let me know if you like to receive it by joining mailing list below. 


Leave Your Comments

Loading Facebook Comments ...

Leave a Reply