In a dream yesterday, someone whom I could not see was showing me a line graph of upcoming moves in the equities market, pointing to it on the page of a magazine.
They pointed out two upcoming drops. The first drop was small, but the second was much bigger. The first drop was fairly steep, then hit bottom and bounced right back up with a similar steep move, forming a V-shape. It went up at least as high as it was before.
My recollection of exactly what happened after it moved back up is a little fuzzy because I saw the whole thing in a brief moment and was not allowed get to a screen shot. Not long afterwards, it dropped again, but much bigger than before. I am pretty sure there were two legs in the second drop, separated by a brief horizontal movement before continuing the second leg, which was steeper than the first.
I was not shown any dates, but the first drop looked like it was coming up next. In the past, these things have often been further in the future than I initially expected, so timing is challenging. However, the daily graph below shows the S&P is now breaking through the top of the Bollinger Bands (green area) and bouncing off of the top resistance level (horizontal red line, R2), which indicates a reversal is likely close.
I was not shown any prices, but a likely target for the bottom of the first drop is the 50-day moving average, which has been a strong support level this year, as shown by the purple line in the chart. The market has tested that level several times this year already and even broken through it temporarily. It is currently at 2424 and trending up, so by the time we reach the bottom of the first drop, it might be close to 2430. So perhaps the bottom is around that level or perhaps a little below it, which would mean the first drop might be 50 to 60 S&P points.
The second drop was significantly larger, but again no prices were shown so my only reference was the smaller drop. Based on that, I am estimating it will drop to the 200-day moving average, which is currently around 2310 and trending up. Historically, the market has found support at that level, like it did in November 2016.
Update Note: This bottom target was confirmed by a dream shared by Z3er Jerry (see comments below). He saw the Dow at 20,300, which equated to the S&P at about 2323, which is about where the 200-day moving average will be by the time it drops.
As always, this information is provided only as a starting point for prayerful consideration and is not a recommendation for investing.
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.