Allow us to explain what we mean by this chart.
1. The market was in a perfect rising channel from the beginning of 2019 to 1-May. However the index didn't bounce back after hitting the bottom of said channel on 1-May.
2. Still, the market was in a wider rising channel until early June.
3. Ideally for this channel to continue we'd like to have seen the index passing 2900 and rising to 3140 around early July, before some mild adjustment. That didn't happen, leaving a huge void in the rising channel. Market started to lose steam.
4. Finally, Trump's additional 10% tariff on China became the last straw. The market broke out of the channel, and will never see its way back. If the current sharp downturn continues, we see SPX hitting 2400 by mid-to-late August!
Short SPY, or any other stock index/ETF really. Long GLD, Long Treasury, Long JPY.
1. The market was in a perfect rising channel from the beginning of 2019 to 1-May. However the index didn't bounce back after hitting the bottom of said channel on 1-May.
2. Still, the market was in a wider rising channel until early June.
3. Ideally for this channel to continue we'd like to have seen the index passing 2900 and rising to 3140 around early July, before some mild adjustment. That didn't happen, leaving a huge void in the rising channel. Market started to lose steam.
4. Finally, Trump's additional 10% tariff on China became the last straw. The market broke out of the channel, and will never see its way back. If the current sharp downturn continues, we see SPX hitting 2400 by mid-to-late August!
Short SPY, or any other stock index/ETF really. Long GLD, Long Treasury, Long JPY.