W-pattern could be fulfilling prophetic warnings of a market crash

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 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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