{"id":147392,"date":"2019-05-09T20:02:17","date_gmt":"2019-05-10T00:02:17","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=147392"},"modified":"2019-05-09T20:02:17","modified_gmt":"2019-05-10T00:02:17","slug":"the-shake-out-continues-where-is-the-bottom","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/the-shake-out-continues-where-is-the-bottom\/","title":{"rendered":"The Shake-Out Continues \u2013 Where Is The Bottom?"},"content":{"rendered":"
May 9, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Smart traders are already asking themselves \u201cwhere is the bottom for this move\u201d.\u00a0 They\u2019ve likely been through these types of rotations in market price before and understand the fundamentals of the US economy are strong enough to support further upside price activity in the near future.\u00a0 The current US\/China trade worries could result in a pricing disruption of 4 to 8%, seen as rotation, yet the US Fed is continuing to leave rates unchanged and most US economic numbers are still posting strong levels.<\/p>\n

So, smart traders want to know where the bottom in the market is likely to be found and when they should start to accumulate new long positions \u2013 which is understandable.\u00a0 We\u2019re here to help.<\/p>\n

Our proprietary Fibonacci price modeling system is one of the unique modeling tools we use to hone into any market move.\u00a0 The reason for this is because it shows us so much data that we can \u201cread into\u201d our analysis\/research.\u00a0 The other reason is that it is an \u201cadaptive learning\u201d model \u2013 which means it continues to learn from price data and adapt its analysis of that data.<\/p>\n

Let\u2019s start with the Weekly YM chart.<\/strong>\u00a0 The GREEN highlighted box on this chart shows where the past two Bullish Fibonacci price trigger levels were generated.\u00a0 These, obviously, become key support levels going forward.\u00a0 The narrow ORANGE box near the current peak is the resistance channel we highlighted many weeks ago that suggested a volatility rotation peak may be setting up.\u00a0 We have also drawn an oblique\/circle on the chart in BLUE that highlights upside Fibonacci target price levels.<\/p>\n

It is our opinion that a further downside leg, possibly to levels below $25,000, are possible as this Shake-Out continues and as the global markets continue to revalue expectations.\u00a0 We are watching the currencies very closely as the Chinese Yuan has devalued extensively over the past few days.\u00a0 This US Dollar strength will keep metals fairly flat while prompting some extra stability in the US stock market over time.<\/p>

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<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

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<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

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This next chart, the NQ Weekly,<\/strong> shows a similar chart format to that of the YM.\u00a0 Clear resistance can be seen near the recent highs and support is found near the $6600 level from previous Fibonacci Bullish Price Trigger Levels. \u00a0The NQ, being very heavily weighted in Technology and Internet stocks, may have the ability to fall the furthest within this price rotation \u2013 possibly as much as -700 to -800 pts before finding support.\u00a0 Currently, a support level near $7400 is the first level we are watching.\u00a0 If the NQ breaks below this level, then we could see a much bigger move to the downside unfold fairly quickly.<\/p>\n

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Lastly, the Transportation Index (TRAN)<\/strong> is showing us that the downside price move may have already reached a level that may prompt intermediate price support \u2013 or a potential base formation.\u00a0 The $10,400 to $10,500 level, which was already reached, appears to be the initial support level for the TRAN.\u00a0 It would make sense that the TRAN may begin to base near this level over the next few days\/weeks while the US stock market attempts to hammer out a bottom.<\/p>\n

Ultimately, the $10,000 level has proven to be very strong historical support for the TRAN.\u00a0 So any breakdown in this index would immediately prompt a target level of $10,000 for the next support level.\u00a0 Again, pay attention to the US Dollar and Gold as this movement continues.\u00a0 Any real fear will translate into a weaker US Dollar and increasing prices in precious metals.<\/p>\n

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In closing, we believe the early signs of a potential price bottom are setting up right now.\u00a0 This may not be the ultimate bottom, but the clear support level in the TRAN is a very good sign that the markets are setting up a support base that may prompt some sideways trading over the next few weeks as the market continues to digest all this global trade news.\u00a0 A deeper \u201cwashout-low\u201d price formation may set up in the INDU or the NQ over the next few days which means we may see a deeper price rotation before the downtrend actually ends.<\/p>\n

Right now, pay attention to our continued research and we\u2019ll help you find the bottom when it forms.\u00a0 Our current expectations are for a continued downside price move that will establish a washout-low formation over the next 3 to 10 trading days.\u00a0 We\u2019re not out of the woods yet, but we are starting to see the early signs of price support \u2013 which means a bottom may not be too far off.<\/p>\n

UNIQUE OPPORTUNITY ONLY IN MAY<\/strong><\/p>\n

On May 1st we talked about the old saying goes, \u201cSell in May and Go Away!\u201d and that is excactly what is happening now right on queue. In fact, we closed out our SDS position today for a quick 3.9% profit and our other new trade started today is up already 10%.<\/p>\n

Second, my birthday is only a few days away and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.<\/p>\n

Right now I am going to give away and shipping out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. I only have 13 left as they are going fast so be sure to upgrade your membership to\u00a0a longer-term subscription or if you are new, join one of these two plans, and you will receive:<\/p>\n

\"\"<\/p>\n

1-Year Subscription Gets One 1oz Silver Round FREE<\/strong>
\n(Could be worth hundreds of dollars)<\/p>\n

2-Year Subscription Gets TWO 1oz Silver Rounds FREE<\/strong>
\n(Could be worth a lot\u00a0in the future)<\/p>\n

I only have 13 more silver rounds I\u2019m giving away
\n\u200b\u200b\u200b\u200b\u200b\u200b\u200bso upgrade or join now before its too late!<\/p>\n

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!<\/a><\/strong><\/p>\n

Happy May Everyone!<\/p>\n

Chris Vermeulen – TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Smart traders are already asking themselves \u201cwhere is the bottom for this move\u201d.\u00a0 They\u2019ve likely been through these types of rotations in market price before and understand the fundamentals of the US economy are strong enough to support further upside price activity in the near future.\u00a0 The current US\/China trade worries could result […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-147392","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=147392"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147392\/revisions"}],"predecessor-version":[{"id":147393,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147392\/revisions\/147393"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=147392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=147392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=147392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}