Sunday, January 17, 2016

Stock Market Plummet Will Arrive By May 2016



Looking at the trend lines for the 2002 and 2008 stock market drops, the last time both occurred the red line (Daily Moving Average) crossed the green line (Exponential Moving Average).  If the trend lines continue, they will cross again in the first 6 months of 2016.   This is one of the reasons we'll see the stock market plummet by May 2016.  Slow global growth and market turmoil in China will also contribute to the upcoming market correction/recession.

The Simple Moving Average and the Exponential Moving Average lines are about to converge again!

Do a google search for 2016 recession and you'll find that there are plenty of economists warning of upcoming stock market drop in 2016.

The Fed Balance compared to the S&P 500.  Even in 2014 is was predicted that 2016 would see another financial crisis. [Image from financialsense.com]

News articles about the forecasted stock market tank in 2016:

Sell everything ahead of stock market crash, say RBS economists - The Guardian

Junk Bonds Signal 44% Recession Risk in 2016 - Bloomberg

Could the Economy Tank in 2016? - 23 economic forecasts for the new year.

Is 2016 the Year of the Next Recession? - Fortune

David Levy Forecasts a Global Recession in 2016

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