Saturday, January 16, 2016

Yes, the Stock Market Will Crash, but Only After This Brief Rally

Rally or crash? Yes! In that order. The stock market indices are at oversold extremes, and the decision support engine's pattern-recognition algorithms have found no instance in the past century when such oversold extremes weren't immediately followed by a multiday to multiweek rise.
Therefore, within the coming three to 13 trading hours, a short-term rally should begin. The daily bar chart of the S&P 500 futures (continuation contract) below shows the two highest probability-ranked paths for the coming one to four weeks. The test of the bright green oval at the lower right corner of the yellow box will lead to a failing retest of 2015 +/-10 before the market reverses and begins the worst bout of selling since 2008, or the markets will manage a few extra weeks of a rally to 2135 +/-20 before the final highs are printed, capping at least the entire rise from the 2011 low, if not from the 2009 crash low.

http://www.thestreet.com/story/13418329/1/yes-the-stock-market-will-crash-but-only-after-this-brief-rally.html?puc=yahoo&cm_ven=YAHOO 

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