Last week I posted 30 bearish indicators here. Since then equities have begun to sell off and change trend after historic and solar-maximum inspired levitation. There is a long way to go to mean-revert, wash-out or fulfil these indicators, but that can be achieved in a shorter timescale with the help of HFT by way of a crash or waterfall declines.
Within that list of indicators we see identification similar to the backdrop to the May 2010 flash crash, and I posted about that here.
We see a similar price pattern into the flash crash repeated here too:
Source: James Goode
We also see identification similar to the Nasdaq peak in 2000, before a flash crash and waterfall declines:
And the same applies to the Nikkei 1989 and solar maximum.
Additionally, recall that major declines in history have often initiated following a weekend, where equities sold off into the Friday close, and market participants have time to stew Saturday and Sunday. Stocks sold off into the close on Friday, in a fairly decisive Thu-Fri trend change.
Recall that the biggest decline days in history have typically occurred close to new moons and full moons. This coming Tuesday is a full moon.
Recall that geomagnetism is bearish for the stock market. We have been experiencing geomagnetic disturbance both Saturday and Sunday this weekend.
Recall that periods of heavy falls in the stock market have typically occurred in the inverted geomagnetic seasonal lows of March/April and October. This is April.
In short, the set-up is here for a crash or waterfall declines, and the greatest potential lies in Mon April 14 – Tues April 15 (tomorrow and Tuesday) for a major historic down day. I balance that with certain short term indicators suggestive of bounce potential, and were that to occur we might look to around the new moon of April 28th for fulfillment. But the crash set up is there for tomorrow, so let’s see.