A W-pattern forming now in the equities market might be the long awaited fulfillment of a prophetic sign. In the past few years, several people have been warned by God to watch for this pattern as a sign to let them know the market is about to crash.
Two years ago, a large W pattern started forming and I wrote three articles about it, but it never completed, so we moved on. However, the fulfillment of prophetic warnings often takes longer than we originally think. Some Bible prophecies remain unfulfilled after thousands of years, but they are still just as true and valid today as ever.
The W-pattern is not just a prophetic warning though. It is also well known by technical analysts as a triple top reversal. The idea is after three failed attempts to break upper resistance, bullish investors give up hope and the bears take over.
Another technical reason why the W leads to a crash is the increased volatility required to form it, like warm up exercises before a big game. Previous major market crashes have not happened overnight, but have been preceded by increased volatility.
The W also provides market manipulators with lots of traps for both bulls and bears. Just when investors become convinced the market is moving one way, it reverses hard the other way. The unpredictable volatility causes traders to give up right before the big move they had hoped for finally shows up. Recognizing the pattern can help us avoid those traps.
A large W-pattern started forming soon after the S&P market reached an all-time high on January 26 at 2872. The first half of the pattern has already completed, but the second half is still forming and looks like it might complete within the next week or so. It is just missing the final bottom and final leg, as shown below.
So far, the W has formed symmetrically with two equal tops in the center forming a small V-shape. I included a W font to show the V-shape in the center is common. The amazing symmetry continued even today as the steep move up was almost identical to the steep move up in the first bottom.
Forecast:
My forecasted price movements in the above chart are based on continuing the symmetry. If it continues:
- Monday’s steep move up should run out of steam soon and a steep drop should follow since that’s what happened in the first bottom.
- Since the first bottom briefly dropped below 2540, we might see the second bottom also drop into that range.
- After the second bottom is completed, the final leg should be steep and completed within a few trading days.
- Since the W is actually a triple top reversal, the final leg might not get any higher than the tops in the center because it is the third and final attempt to break upper resistance. If that pattern continues, the final leg should not get much higher than 2800. Even though that would make the W look incomplete, I think it’s a likely scenario, not just based on technical patterns, but also prophetic warnings, as revealed in a prophetic dream shared by Z3er Faith, which I posted in March 2016. In her dream, she went to the top of a hill where she was shown a W, but the final leg was not fully formed. (See complete post)
Once the final leg is formed and fails to break resistance, panic selling is likely to start soon afterwards, causing a steep drop. Even then, it does not mean the markets start crashing immediately because that’s not the way previous crashes have happened. Historically, once the panic selling begins, it takes about three weeks (13 to 15 trading days) before the market finally hits the bottom and the biggest part of the drop happens in the final five days. (Source: Historical analysis by Aaron Brickman)
Conclusion:
From both a technical and prophetic perspective, I think a crash is close. Not only are we seeing the W-pattern and significant volatility, but there are far more prophetic warnings of a crash now than at any time since I’ve been tracking it. I believe God is going to use this to help His people, at least those who are properly positioned for it, get out of debt. As soon as the final leg of the W completes, I am expecting the three-week countdown to begin.
Prophetic dreams and visions reveal partial incomplete information and assumptions, which might be wrong, so these insights are not a recommendation for investing, but are offered only as a starting point for prayerful consideration.
Author: James Bailey
James Bailey is an author, business owner, husband and father of two children. His vision is to broadcast the good news of Jesus Christ through blog sites and other media outlets.
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Where has Phanuel been? I miss reading his comments and posts. Phanuel, please check in with us, you are missed!
Blessings,
Corrine
Corrine, The Lord has put him on my heart, I had a dream yesterday that I was having lunch with him. I’m sure he is fine, spending quality time with the Lord and his family.
I miss Phanuel too. I’m sure he’s in regular contact with James and will update us shortly. I remember he had some personal things to attend to back in November/December of last year, and therefore was unavailable to be with us then, but he did ultimately return. Hope he returns soon.
He’s doing fine and is just taking a break.
Where is Phanuel? Miss his financial/crypto insight.
I heard after communion, dote on me so when the stock market crashes you will not be shaken.
Also had a dream a week ago that there was an intense storm and i Remember saying it was the most intense storm I had ever seen.
Thanks for sharing those confirmations Sarah.
Prophecy – Poem Free Us 3-26- 2018 Lois Vogel-Sharp
“The markets crash, you’ll be aghast…”
https://www.youtube.com/watch?v=HCD0jvYNkDo
I don’t know about this W, but I do know that we were up a couple hundred points today on the DOW, bounced right off the 50% dead cat bounce line and are now down 150 points. The market also bounced right off the 38% line on the SPX, and is down substantially. These are very bearish signs.
I personally bought back into UVXY, and already had FAZ.
DOW -238
Kind of reminds me of “The big W” in “It’s a mad,mad, mad,mad world”. Just sayin.
It’s a big W I tell ya!, It’s a big W !!!!
Erdogan Calls on Global Trading Partners to Smash US Dollar Monopoly
“We need to gradually end the monopoly of the dollar once and for all by using local and national currency among us,” Erdogan said at a business forum in Kyrgyzstan.
https://www.sgtreport.com/2018/09/erdogan-calls-on-global-trading-partners-to-smash-us-dollar-monopoly/
Erdogan is a prime candidate to be the A/C, the Assyrian, since half of Turkey was part of the old Assyrian Empire. Of course, he’s right about the fiat dollar and American (deep state) imperialism.
God is great to reveal the market revelation of M. China has imposed tariffs on the import of US car , bean , etc. Dow future down 400 points to 23590, S&P down 35 to 2576. The final leg of M seems to be forming.
The final leg of the M completed on Monday April 2. It shows up best on the one-hour chart.
Just read this news: Chinese top leader
Xi Jinping will make announcement of major opening measures on 2018
Boao Forum for Asia. The conference is scheduled between April 8-11. As it is said some of the measures or change will ” exceed international expectations “. http://www.wenxuecity.com/news/2018/03/31/7115932.html
Personally I would expect China will yield to the demands of US about the current trade war. So this should be a news to boost the US market.
A reminder is that April 8 8am in China would be equal to April 7 8pm in US.
It should be very possible that the stock market should have a big jump on the opening of US market on April 9 ( Monday) .
Not so sure now that market may rise up high on April 9 now, because CA earthquake may happen on April 8 ( LVS’ 1 2 3 time is up. 1 2 3 = April 8, Nisan 23 ) .
Amazingly it should be the final leg of the Big W.
My IG chart on the S&P hit 2559.79 – pretty close to that 2560 James – you had mentioned it hitting that level on Thursday morning – was a little late – took til afternoon (lol) – great call – appreciate your insight.
Thanks John NZ. It spiked up there so fast I thought it only went to 2558. If we’re going to get good symmetry in the M-shape, it needs to get back up to about 2675 Monday. I closed my long position at the end of the day today just in case anything weird happens over the 3-day weekend.
James,
Curious to get your updated thoughts as to whether the upward push toward 2674 is complete? thanks taj
I was looking for an M-pattern and it has now completed. The first half of it reached the top at 2674, so I was looking for the second half to come close to that, but it only made it up to about 2660. So it’s slanting downward, but still clearly an M. It shows up best on the one-hour chart. The top of the second half was 14 points below the top of the first half and the bottom of the second half has already reached about 30 points below the bottom of the first half.
April 9 is a key turn date in the Fibonacci time zone tool, but unclear whether it will be a top or a bottom. I am leaning toward a bottom, which would mean the final leg up would begin soon afterwards.
James,
Thursday S&P rise as high as 2672, very close to the top of the first half of M at 2674. Maybe Friday’s market will be going down. A lot of bull traps and bear traps.
Yes, lots of traps. I think it’s good to take profits when we get them and not get too greedy because the next day they could be gone. I agree with you regarding the drop over the next few days, forming the second bottom of the W followed by a steep move up.
James,
Just to reflesh our memory. What is the S&P level you would assume to be the bottom of the W we are expecting ?
I have not been shown any numbers, so I am relying on forecasts from cycles analysts. Several of them are expecting a drop to around 2550, close to the April 2 bottom, 2554, and perhaps a little lower. The Fibonacci time zone tool shows the bottom should be on Tuesday, April 10, but it is sometimes off by a day.
James,
About this second bottom of this big W, has it been formed yet? Starting from April 13, a lot of US companies begin to report the quarterly profit. Yesterday’s S&P closed at 2642. It feels like it is hard for S&P to drop to 2550 with today and tomorrow’s trading, while in next week you are expecting the market start to form the final leg of big W.
I am expecting the second bottom of the W by next Thursday, April 19, followed by an extremely fast move to the top, completing the final leg by Friday April 20. That’s exactly the way it happened in September 2008 during options expirations week and next week just happens to be options expirations week again. I think the second bottom will be lower than the first bottom. The first was 2534 so I am expecting the second to be around 2460 to 2480, low enough to freak everyone out, which is also what happened in 2008.
Thanks.
I am hoping it will get to the lower low 2505, then close at around 2550. Phanuel saw 2510, maybe it is the point to change the market trend. Any way, from the current 2662 dropping to 2550, that’s 110 points. Still a very nice drop. It looks like we are on the way of dropping now.
James,
Has the last leg of the M be completed?
Yes, it completed on Monday, April 2.
James,
Do you expect the market will keep going up on Thursday Friday and/or even next Monday, then drop down again to form the last bottom of Big W? Or the market will keep going up to form the last leg of Big W now?
The Fibonacci time zone tool shows a significant turning point on about April 10, but it is sometimes off by a day or so. The cycles analysts I’ve heard are thinking that’s a bottom, possibly even lower than the previous low, which was 2554. So I think the bottom is early next week and we then start the big move up to form the final leg of the W.
Curious which cycle analyst you are referencing. I would be curious to learn more about the fibonacci time zone tool.
The Fibonacci time zone tool is one of many tools available using tradingview.com. They offer free accounts, but for access to everything they have monthly subscription plans. I found their tools are very helpful, like turning on the lights.
I cannot identify the names of the cycles analysts I was referring to because their information is only available with a paid subscription.
Watching the futures price action going into tomorrow I think will tell the story. Based on multi-timeframe stocastics – the key timeframes are at lows – except for the 4 hour (which is showing bullish divergence). If the 4 hour does a crossover in 8-12 hours into opening session tomorrow – then the weekly, daily and 4 hour will create strong synergy for a move back up. I am of the opinion that the markets moves up over next few days.
Thanks for sharing those thoughts John NZ. SPX dropped about 104 points in the past two days before retracing some of that late today. A 50% retrace would at least get us back above 2600, but hopefully we can get more than that. There is a key turn date next Tuesday, April 10. I think that might be the second bottom of the W. After that, I am expecting a steep move back to the top.
Needed to add a correction – the weekly stochastic is still sloping down – I meant to say synergy between daily and four hour stochastics might predict a move back up. Historically the weekly stochstics is a lagging indicator. The 225 pt move up (Feb 9-15th) occurred while the weekly stochastics was sloping down. Will have to watch.