This week wasn’t any easier than the last, with more chaos throughout the markets and more concerns that a recession is surely to come.
So, we’re at a tipping point. In the Dark Window scenario that I’ve been talking about for a year now, a move upward here would be way up – maybe even to 10,000 on the Nasdaq. Conversely, we could find the markets take a bigger break. But right now, we’re in this mini-megaphone pattern recently where we keep making slight highs when we go up but – just our luck – new lows with every down.
At this point we could go either way – 25% up or 25% down, it’s not yet clear.
Surely there’ll be some movement today. Fed Chair Jerome Powell spoke in the morning while we were filming, and markets are likely to move in one direction or another based on the reaction to his comments. And there’s still China to worry about. A continued standoff bodes poorly for stocks and would be good news for gold. But if we can reach a deal we might see markets start to move up.
But that’s not happening in the short-term. You can take that to the bank. The markets did react downward to Powell’s more muted response today, and gold is knocking at the $1,525 resistance point again. Bond yields are headed down again. This far, same trends which suggest stocks more likely to head lower and gold higher ahead. A break of the June 3 lows in stocks would be more significant for the downside scenario, as would a clear break above $1,540 on gold.
We’ll keep you updated.
We’ve had a mini-megaphone pattern going on for a couple years now, says Harry Dent. And right now the markets are about to break one way or the other…and it’s all news dependent. Watch now to find out what you should be looking for in the weeks ahead. Check out Harry’s latest bestseller, Dark Window, here: https://pro.dentresearch.com/m/1142369
Posted by Economy and Markets on Friday, August 23, 2019