Stock Market Breakout Or Breakdown – What Does The Next Big Trend Look Like?
Stock-Markets / Stock Market 2021 Jun 02, 2021 - 11:53 AM GMTJust in case you missed this recent research article, we wanted to put it back on top of your reading list for the long Memorial Day weekend. As the markets continue to slide into this “Start of Summer” holiday, we’re still seeing big trends setting up over the next few weeks and months. The way certain assets and sectors are reacting right now may lead many investors to believe a breakout trend is setting up (which could be the case). But, behind the scenes, sectors are starting to show signs of a broader Excess Phase Peak pattern that may surprise those that are not paying attention.
Our Custom Volatility Index, shown below, suggests the markets have now rallied into extreme overbought levels which have historically resulted in a moderate price pullback after reaching levels above 13~14. We may start out seeing some type of bigger price trending/rotation after the long Memorial Day Holiday should this indicator prove accurate.
Please take a minute to read the research article mentioned above regarding how various asset classes and market sectors have already moved into phase #2 or phase #3 of the Excess Phase Peak price pattern to prepare for any type of trending price activity over the next few weeks.
The markets are likely to enter a very volatile period of price rotation fairly quickly and turn into a true traders market. Best get ready for it now.
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Have a great day!!
Chris Vermeulen
www.TheTechnicalTraders.com
Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic
Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.
His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.
He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk
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