The two biggest catalysts for the stock market rally are over.
Those catalysts were:
1) The hope of a Fed rate cut.
2) The hope of a Trade Deal between China and the US.
Regarding #1, the Fed June meeting resulted in no rate cuts. And last week’s jobs numbers greatly reduce the likelihood of a rate cut hitting in July.
Moreover, the Fed doesn’t meet in August. Which means the soonest the Fed would be able to cut rates would be September.
Regarding #2, the much-hyped meeting between Presidents Trump and Jinping at the G-20 meeting came and went. Despite all the hype and proclamations of success, a Trade Deal was not reached. In fact, it looks as though whatever points were agreed upon have already fallen apart.
This means… we are now in the window for a major market drop.
Stocks are completing their second bearish rising wedge formation of the year. The last one occurred right before the May drop. Given that this second wedge was both shorter and faster, the move will be even more violent.
Indeed, this is happening right as stocks slam into the overhead resistance on the megaphone pattern (blue lines) that stocks have formed over the last three years.
Stocks should now drop to 2,900. But if they can’t hold that level, the door opens to something TRULY nasty.
On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.
In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.
Today is the last day this report will be available to the general public.
To pick up one of the last remaining copies…
Chief Market Strategist
Phoenix Capital Research