Having discussed in my previous idea the stock market during election years and the fact that a crisis during an election year invariable leads to a change of president, I want to highlight the current trend and the D Day spot it is heading towards.
Here are eight observations (with numbers marked on the chart):
- Stocks Bounced off the two-year resistance line (the uptrend of new all-time highs)
- This downtrend is heading directly for the November 3rd election date.
- The election date and the downtrend correspond to the ten-year support line for the S&P500.
- The LST Crash Detector worked well for the majority of the crash from Feb 2000
- The LST Crash Detector signifies the start of the next crash.
- The market is moving down on heavy volume (bearish)
- The Advance-Decline Ratio is weakening (despite obvious Fed buying)
- RSI confirmed the correction.
Hypothesis: Under 3000, by election day.
So what will D Day be?
- Decision Day
- Democrat Day
- Disaster Day
- (in) Dependence Day