Trade War & Bearish Indices | SELL Orders | Aug 2019

Trade War & Bearish Indices | SELL Orders | Aug 2019
Entry / Stop Loss & Take Profit levels.
Markets: EU & US Indices
CAC40
GER30
US30
SPX500
NAS100
VIX

Trade War & Indices | Elliott Wave Analysis

Bearish Territory & Recap

The Trade War talks and side-effects have been weighing on global Indices for the past few months.

A gradual but sustained wave of volatility hit the Markets, with its monthly swings assisting with deciphering the patterns more and more.

I’ve been able to track these Markets and forecast most, if not all, of the larger bearish swings. I’m on track!

As the swings started unfolding, I then laid low, watching and waiting for more clearance, but assisting the Green Room members with daily updates.

A Market Crash is coming!

Yes, I said it! Only that this would not reflect a “healthy”, “cyclical” or “normal” Recession. It’s so much more than that, it’s a Depression. Multiple years of bearish trends could follow.

It is without a doubt that a Trade War is not good for anyone, and that it would escalate into a much larger global contraction. Historically, we’ve seen that happen before.

In fact, it could even be the catalyst for a series of chain-reaction events which would reverse into a Bear Market.

The perfect storm is brewing, here’s what we have:

Stock-markets peaking all-time-highs
Global debt punching through the ceiling
Consumer confidence deceasing
Inflation practically forcing central banks in Recession
Global leaders treating other counties as business rivals
Negative correlations over government bonds

From a technical standpoint, the Indices are globally located in a larger degree contraction, with a final rise awaiting, after the current Trade War talks blow over.

An idea can be formed if one would take a look at the Market Crash Road-Map which I shared previously.

I do see a Trade War deal being reached for now, but I also see a larger degree catalyst around the corner.

With all this said, it’s time to move towards some technicals. Buckle up!

Charts & Structures

The Trade War talks have placed Global Indices in a larger degree corrective sequence.

EU & US Indices have been classified as Complex Corrective Structures, in WXY Minor degree sequences.

The first two legs have finalized, with Minor W (purple) unfolding since mid-April until mid-May, 2019, and with Minor Y (purple) unfolding since mid-May until late-July, 2019.

Of course, in late-July, the Markets found their tops, along with new all-time-highs.

The drop that followed is to be treated as the first leg of Minor Y (purple), with the current structure reflecting the correction before the last bearish leg.

Currently, EU & US Indices are most likely on the verge of completing wave B or X corrections, which in turn would lead towards more down-side.

The expected falls would reflect Bearish Impulses, and after these moves, the Bull Market could return in an impulsive manner.

An then of course there’s the VIX which is dangerously hovering around the Golden Ratio for a potential spike.

VIX (Volatility Index) – 2H Chart (picture)