On the left is the 3M timeframe which shows a trend line resistance extending all the way back to the Great Depression.
Touch 1 = Roaring 20's 1929
Touch 2 = Dotcom 1999
Touch 3 = 2010's Bull Run
Touch 4 = 2020 Covid Stimulus
On the right we have the 1W timeframe showing a broadening wedge nearing completion. Looks like we are finishing Wave D and about to dump into Wave E. However, this count could be off and we actually completed our Wave E in the March crash. From a fundamental perspective, I am leaning towards the former as the economy is not healthy at the moment. Disregard ATHs, stimulus, and vaccines. People are in debt, unemployed, and the dollar is inflating away.
Over the first half of 2021 I am expecting Wave E to play out. Reflecting upon the Great Depression, we had an initial wave of selling and a sharp buyback. This created the "V" correction that we have right now. However, the Great Depression then accurately reflected the state of the economy as it slowly grinded down for the next 3-4 years. That is what I suspect is coming.
I am ready, are you?
Touch 1 = Roaring 20's 1929
Touch 2 = Dotcom 1999
Touch 3 = 2010's Bull Run
Touch 4 = 2020 Covid Stimulus
On the right we have the 1W timeframe showing a broadening wedge nearing completion. Looks like we are finishing Wave D and about to dump into Wave E. However, this count could be off and we actually completed our Wave E in the March crash. From a fundamental perspective, I am leaning towards the former as the economy is not healthy at the moment. Disregard ATHs, stimulus, and vaccines. People are in debt, unemployed, and the dollar is inflating away.
Over the first half of 2021 I am expecting Wave E to play out. Reflecting upon the Great Depression, we had an initial wave of selling and a sharp buyback. This created the "V" correction that we have right now. However, the Great Depression then accurately reflected the state of the economy as it slowly grinded down for the next 3-4 years. That is what I suspect is coming.
I am ready, are you?