The stock market reached a major turning point yesterday as technical indicators shifted from strongly bullish to strongly bearish and are now pointing to a significant drop ahead.
After soaring 960 points over the previous seven trading days starting February 11, the Dow Jones Index appeared ready to blast off, but that all changed yesterday when it dropped by 188.88 points (-1.14%) and the S&P dropped 24.23 points (-1.25%), but the bigger news is the technical indicators showing a financial power shift just happened.
We Just Went Over the Cliff
According to a highly respected analyst, Tom Demark, the S&P had to close yesterday above 1926.82 to avoid falling off a cliff. It closed at 1921.27, which means we just went over the cliff. According to his projections, the market will now drop at least another 8.2% and possibly more. (Source: Zero Hedge)
Thomas DeMark is the founder and CEO of DeMark Analytics, LLC, creator of the DeMark Indicators. Bloomberg reported how his recent projections have been amazingly accurate.
“A handful of chart-based calls by DeMark have looked prescient in recent weeks, including a prediction on Feb. 11 that oil would rally and a Jan. 20 forecast for a temporary bottom in the S&P 500. In the same interview he made the crude projection, he said the S&P 500 might go as low as 1,797. It bottomed that day at 1,810.10 and closed at 1,829.08.” (Source: Bloomberg)
With the shift today, Demark’s forecast shows the Dow will now drop down to at least 15,084 (-8.2%), a drop of 1,347 points, and possibly down to 14,624 (-11%), a drop of 1,807 points. Drops of that magnitude would be a calamity for millions of investors as the value of their accounts would drop sharply, but again the bigger story is the longer term impact as the downward trend continues.
JP Morgan Helped Push Us Over the Cliff
The financial power shift was confirmed yesterday when too-big-to-fail banking giant JP Morgan announced a whopping 25% drop in their first quarter revenue forecast for their debt and equity capital markets (Source: Zero Hedge). That news effectively pushed us over the edge by driving the S&P index down below Demark’s important 1926.82 threshold.
Financial stocks, like JP Morgan, are considered leading indicators of market crashes because they have historically led the way down, so when a financial giant announces a 25% drop in revenues, it could mean big trouble for other sectors is coming soon.
Prophetic Warning Fulfilled
Today’s financial shift is exactly what Ali Winters warned about on January 21 2016 when she posted on her Watchman on the Wall blog on February 17 when she posted on her blog:
“February 23 will bring a shaking to your nation. The financial sector will see a shift in power. Yes, great calamity.”
Then two days later she posted:
“February 23 will bring a shaking in your nation. The financial sector will see a shift in power. Market downturn – meltdown, financial crisis. ‘Corporate easing’ (I clearly heard this term several months ago and had no idea it’s meaning until 2/11/16 when Holy Spirit gave me the meaning). Corporate easing is the relaxing of power corporations have on business, relinquishing that power to the government. It will not be a pretty picture as business’ begin to topple; struggling to maintain control many will lose it all. Monsanto and IBM collide with government in power struggle for control.”
Ali’s warnings, which were also shared in my post, Stock Market and Dollar Might Both Get Punched Hard This Week. came to pass yesterday with the downward shift in the financial sector. The steep drop in revenues at JP Morgan is evidence that a shaking has come to our nation. It was enough to trigger crisis warnings from the technical indicators, which I believe marks the beginning of a new season of financial losses for investors. The time of calamity arrived and the initial pain was felt.
This shift also confirms what I heard regarding the sign I was given to watch for, President Obama’s authorization of $1.2 billion in military spending, which was fulfilled two weeks ago on February 9. God told me that would be a turning point in the markets. So we are getting a series of confirmations that the long term trends are now reversing, but they don’t change on a dime. The shifting has started, but we have to back away from the trees to see the forest because long-term trends are obscured by short-term volatility.
Along these lines, the following insight was shared in a comment posted today by Financial Consultant Julz Wanton.
“Put yourself in God’s shoes, if He chooses to reveal a day to His children (which is an honor and one we should never expect) which day should He give? If the markets are to crash over the following days, weeks, or months, the day I would most want to know is the first day of the downturn so I can get prepared for it. Knowing the day when people are rioting and the corporates are being taking over by the government is not much good to us, by then the financial collapse has already occurred, wealth has already been destroyed and we would have totally missed it.”
We all seem to have a natural inclination to assume the worst whenever we hear a prophetic warning. So when we hear the word ‘calamity’ we picture a mushroom cloud over New York City. Then when it turns out to be anything less than that, the temptation becomes too much for some ravenous wolves in sheep’s clothing, so they attack whoever dared to step out and speak what God told them to speak. Amazingly, these wolves always believe they are serving God by devouring His sheep with slander and false accusations.
I looked up the definition of ‘calamity’ and found this: “misfortune or disaster, a grievous affliction, a disastrous event marked by great loss and lasting distress and suffering.”
Yesterday’s events revealed great misfortunes in our financial system as it became evident there was nothing holding it up but smoke and mirrors. The shifting promises to bring great loss, grievous affliction, lasting distress, and suffering to many people as markets fall.
February 23 and The Story of Esther:
I was not being a good watchman when Ali sent me her warnings about February 2 and 3 with her instructions to watch the day carefully because I did not watch or even pay attention to the news. I would have missed it completely if not for a couple of faithful watchmen who took the time to send the information to me. I believe God went the extra mile to help me see the fulfillment of those events because they were signs pointing to what was coming on February 23. I don’t believe it was any coincidence that He chose February 2 and 3 to point to February 23.
There were a lot of things happening yesterday that were easy to miss without God’s help. For example, it was a Jewish feast day, Purim Katan. According to Jonathan Cahn and others, every major economic crash has occurred precisely on Jewish feast days, so I don’t believe the selection of February 23 was a coincidence.
Purim is a celebration of how God delivered the Jewish people through the courage of one woman, Queen Esther. When Esther was informed that her actions could get her killed, she replied, “If I perish, I perish.” (Esther 4:16)
With that in mind, consider my email correspondence with Ali Winters on February 19. After I discovered the fulfillment of her prophetic warnings about February 2 and 3, I wrote to her, “I thank God for your boldness in speaking dates. Not many people are that bold!”
She replied, “My friend, in fear and trembling I post what I truly believe Holy Spirit says. I have promised my LORD that I will faithfully stand as a watchman on His wall and stand I will. Each time he gives me a date, I almost throw up, it really is HARD for me to write, but I am His and if I perish, I perish.”
Ali did not know February 23 was Purim Katan. She was not trying to quote Queen Esther, yet God revealed she has the same heart as Esther because she spoke the words of Esther. This is the heart of someone who takes no regard for her own life as she speaks forth whatever God gives her. Perhaps God has raised up Ali for such a time as this because after counting the cost, with fear and trembling, she proceeds anyway. I believe anyone who does that deserves special recognition because it is rare. So many shrink back in fear of losing their reputation or their jobs or whatever. When God speaks to them, they remain silent. They pass by His opportunities, so He passes by them, giving their assignments to someone else.
I replied back to Ali, “I love that last line, “if I perish, I perish.” That is the secret to overcoming in this life!”
The wolves seek to devour her, but to me she is a true heroine.
Where Do We Go From Here?
Even though the market is now moving down does not mean it will stay down. I believe it will hit a bottom and come right back up again, possibly even hitting new highs for the year. I believe this for the following reasons.
First, I was given four signs to identify when we are close to seeing big crash and three of them have happened, but I am still waiting for the fourth, which is increased tensions between the American people. I believe the final sign will begin to manifest prior to the big crash, so this current move down cannot be it.
Second, on February 15 I was shown the sequence of future price movements for USD/CHF in a dream about karate fighters. See my post, Karate Fighters Reveal Future Forex Price Movements. The fight scenes revealed a few small moves up followed by a big move down followed by a much bigger move back up. We have already seen the first part fulfilled with small moves up, so the big move down comes next, which fits perfectly with the new downward shift in the stock market because the dollar often moves in the same direction. After the big move down, I saw fast moves way up, so I am expecting to see similar upward movement in the stock market at the same time for the same reason.
Third, if the stock market makes a big move down followed by a bigger move up that would complete the giant W pattern in the stock market index, which has been forming since August 2015. Technical analysts call this pattern a triple-top reversal because it often precedes market crashes. So I believe we are going to see history repeat itself, even if the W starts to look like it is sliding over the edge.
Fourth, Z3 Administrator Rob Perrett shared the following insights in a comment posted two days ago.
God has been using the vertical motion/movement in my dreams to show the DJI movement, I’ve been tracking this for a few months and its quite accurate. Last night I had a dream where in one part I rappelled out of a helicopter onto the ground. So I know that the DJI is going to have a very sharp drop sometime this week. I haven’t had success yet in picking the exact pricing points or timing, but given its going to be straight down, I’ll get out as soon as it stops falling.
Secondly, the 4th leg of the W I also know is coming. On the 26th Dec and then 28th Dec I had dreams about DJI “going to a new high and then falling”, “the number xx9xx”, so I think/guess this is going to be 17900. At the time they really threw me off as DJI was at 17600 so I was long when it fell in January. However thus far none of my dreams have come up empty and the extended wait for fulfilment is similar to last year when I shared about USD/CHF going back up to 98.2, which took weeks to be fulfilled, but it was.
God is in the process of transferring financial resources into His kingdom and we have a part to play. I have a good friend here who pastors a church living with no income, and God provides miraculously for him every single month. Another guy I just met has been traveling Asia for one year with no money, just going where God sends Him. His clothes haven’t worn out and he’s not thin so I know God is taking care of him too. God always provides in many different ways, I’m glad to be a part of it all in this particular way too.
Like Rob, my plan is to take my profits when it hits bottom, then get back in with more shares after it goes back up.
A financial power shift has occurred. For those who are spiritually dead or asleep, the calamity has already started. However, God is giving insights to those who follow Him closely. The same shifting bringing correction to the unrighteous is bringing great blessings to the righteous who have been prepared for this time to advance God’s kingdom in the earth.
I agree with the comment posted regarding the 188.88 drop in the Dow yesterday. The number 8 represents new beginnings and we just got four of them in a row! A new season has arrived. It is the season when darkness falls upon the world, but light arises on God’s people (Isaiah 60:1-5).
Just as the Lord spoke to Matt Smith recently, “The time has come for Me to bless you mightily.”
Author: James Bailey
James Bailey is a blogger, business owner, husband and father of two grown children. In 1982, he surrendered his life to the Lord Jesus Christ. In 2012, he founded Z3news.com to broadcast the message of salvation by reporting end time news before it happens.
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