{"id":87295,"date":"2016-03-28T13:09:53","date_gmt":"2016-03-28T17:09:53","guid":{"rendered":"http:\/\/countingpips.com\/?p=87295"},"modified":"2016-03-28T13:09:53","modified_gmt":"2016-03-28T17:09:53","slug":"a-top-in-place-for-oil-spx","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/03\/a-top-in-place-for-oil-spx\/","title":{"rendered":"A Top in Place for Oil & SPX?"},"content":{"rendered":"
March 28, 2016<\/div>
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By\u00a0Chris Vermeulen<\/strong> –\u00a0www.TheGoldAndOilGuy.com<\/a><\/strong><\/p>\n

Stock markets rebounded solidly from their lows of February 11th, 2016, making new multi-month highs, earlier last week. The SPX rescinded 0.7% by the end of last week. These market gains can be attributed to the very bullish decisions of the European Central Bank (ECB) and the FED Central Banks.\u00a0 On March 10th<\/sup>, 2016, the ECB surprised the financial world by announcing a much stronger than expected stimulus package. One week later, the FED announced that it would not raise its\u2019 short-term interest rates. It was only three months earlier, back in December of 2015, that they suggested that they would raise rates four times in 2016. It is now my belief, that they will not raise short- term interest \u2018materially\u2019 in 2016.<\/p>\n

Most broad-based indexes are now trading flat thus far in 2016, as range-bound conditions persist.\u00a0 FED members will be speaking during the course of this week, including FED Chairwoman Dr. Yellen who will speak, tomorrow morning, Tuesday, March 29th, 2016, to discuss the next move of this unprecedented intervention.<\/p>\n

The change of attitude is due to the fact that the global economy is so weak that Central Bankers fear a \u2018market crash\u2019. Obviously, they want economic growth. They want inflation, but, so far that has not materialized. They have had the power and independence, in these past seven years to do so, but we are still spiraling towards \u2018deflation\u2019.\u00a0 What they have achieved was \u2018Asset Inflation\u2019 and \u2018Earning Inflation\u2019. We will see and feel the effect of such \u2018excessive monetary stimulus\u2019 induced by the Central Banks, very shortly.<\/p>\n

The charts of stock markets are still long- term bearish (refer to the charts below) and are currently approaching a critical juncture! \u00a0This is a location that we could see a very short -term bounce, but I am not interested in taking any long positions. The markets could still push a bit higher. In April 2016, global stocks will enter their annual period of negative\u00a0seasonality along with its\u2019 bearish technical internals. I am waiting for confirmation of the top being in place, in order to finally recommend Inverse ETFs.<\/p>\n

Overall, this is just the beginning of the major SPX turn.\u00a0 We are currently at an \u2018ideal resistance\u2019 area. The SPX is currently in a downward channel. The momentum oscillators are extremely overbought and are now trending downwards. They need to cycle back down. Volume is declining with higher prices and that is a sign of weakness. \u00a0I will keep monitoring this new major event which continues to slowly unfold.<\/p>

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The U.S Dollar has moved up in the past few days. This is placing pressure on gold, silver and crude oil.\u00a0 The retracement of gold and silver is now in the process, as I have been discussing over the past few weeks. We are heading even lower for a fantastic long term entry.<\/p>\n

\"sp[x28a\"<\/p>\n

\"spx28b\"<\/p>\n

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Stock Market & Crude Oil Relationship<\/strong><\/p>\n

The recent month long rally in stocks which started early in February was given a lot of upside momentum from the rising price in crude oil. But when oil stalls, tops and starts another decline expect the stock market to fall fast and hard.<\/p>\n

\"oilspx28\"<\/p>\n

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Market Tops: S&P 500 and Crude Oil Conclusion:<\/strong><\/p>\n

In short, the stock market and crude oil prices have posted some serious gains in the past month. But both are not showing signs of weakness in terms of price action, buying volume, and cycle analysis.<\/p>\n

We may see stocks and oil hold up and possibly make minor new highs over the next five to ten sessions but it\u2019s going to be a struggle (choppy market) before we likely see the next market selloff.<\/p>\n

Time The Market Using Inverse and Leveraged ETF\u2019s: www.TheGoldAndOilGuy.com<\/a><\/strong><\/p>\n

Chris Vermeulen<\/p>\n

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

By\u00a0Chris Vermeulen –\u00a0www.TheGoldAndOilGuy.com Stock markets rebounded solidly from their lows of February 11th, 2016, making new multi-month highs, earlier last week. The SPX rescinded 0.7% by the end of last week. These market gains can be attributed to the very bullish decisions of the European Central Bank (ECB) and the FED Central Banks.\u00a0 On March […]<\/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-87295","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/87295","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=87295"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/87295\/revisions"}],"predecessor-version":[{"id":87296,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/87295\/revisions\/87296"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=87295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=87295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=87295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}