Investment expert reveals the timing of the US market crash and recommends where to invest all your capital

With global stock markets looking increasingly fragile and vulnerable, and with interest rates rising, especially in the US. On top of this, the traditional crash season is at hand, it is a good time to look at a possible crash scenario in terms of the charts. Analysts say that so far the fall has been quite gradual, but it may not continue to be so.

MarketCrash within reach?

It should be pointed out here that given the state of the economy and the outlook, the market should be much lower, only managing to hold it due to the Fed intervening and doping the market perhaps via Blackrock and Vanguard etc...

We know they can create unlimited amounts of money for this purpose, which is why various analysts are cautious about predicting a massive crash, and then simply sticking the company with the bill by raising inflation.

Looking at the most recent 6-month chart for the S&P500 index, we can see that the market is falling into the expanding downtrend it is currently in and heading towards the support shown above the lower boundary. If this support fails, we can expect it to head towards at least the lower boundary of the channel.

Source: stockcharts.com

Source: Stockcharts.com

In August, the 5-year chart helped us determine that we were in an established bear market and this chart shows very clearly what is happening. The market is rounding off and gradually accelerating towards a decline below the topping pattern, just as it did in 2008.

This chart predicts the eventual failure of the support levels shown, leading to a sharp decline or crash, which would hardly be surprising given the abysmal state of the economy and the deteriorating outlook. The downside risk will increase significantly when support fails at the 3600 level. Again, it is worth noting that the market is not oversold on its MACD on this chart, which means that technically there is plenty of room for it to fall.

Current Chart 2022

Chart from 2008

Looking closely at both charts, we can see quite a similarity there, can't we? On the 5-year chart for the S&P500 index, which covers the 2008 market decline period, we can see an uncanny and eerie similarity.

There is no need to overstate this, because as we can see from the charts above, the similarities are quite obvious. It is interesting to see how the path towards the DOME boundary in August this year matches a very similar path in May/June 2008 before the market fell. Exactly as it is doing now.

Compare these 2 charts and form your own picture.

One last, very important point to note is that after the market crash in 2008, the Fed opened the valves and flooded the system with repeated quantitative easing. It will not be able to do so this time, because the system is already being used to the maximum, and all the tools have been used, so there will be no similar recovery.

What to invest in?

Many analysts clearly recommend, and I personally agree, investing in physical gold and silver, because what is important is their intrinsic value, the price of paper at this stage is irrelevant, as we can see from events and the evolution of the EURA price.

Source.

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