What do you get when you combine: a fading stock market, frozen central bank assets (including oligarchs), widespread credit downgrades, getting kicked off SWIFT, potential cyberattacks, spiking inflation, evaporating fiscal and monetary stimulus, and Fed interest rate hikes? In my opinion, the perfect recipe for collapse.
DOW DAILY CHART: Stocks may be entering the sharp breakdown I’ve been forecasting. Strong downside follow-through that finishes below the February low (32,300) would confirm a repeat of the 2018 taper-tantrum and project a decline to 29,700 by March 25 (+/- a trading day). If selling accelerates faster than anticipated (very possible), then a trip to fill the open price gap at 28,500 becomes likely.
I don’t like being so pessimistic, but things could get ugly over the next few weeks. Markets could plunge further than expected. If prices do plummet, I’ll be on the lookout for rare opportunities.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here.
This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/stock-market-collapse-231522478.html