Another confirmation could now be unfolding, letting us know a sudden economic collapse is coming soon. This latest confirmation comes from a pattern in the stock market price movements, which began forming about six months ago.
Just as doctors are able to recognize the signs in a patient who is close to dying, such as the death rattle, technical analysts are able to recognize patterns in the market letting them know a major reversal is coming. In the final months of a long-term bull market, the market often forms a distinct pattern, which is called a triple-top reversal.
On a graph, a triple top reversal looks like a giant W because the market moves down, then back up, then back down, then back up one final time before dropping sharply. Here is how two different sources explain it:
The Triple Top Reversal is a bearish reversal pattern typically found on bar charts, line charts and candlestick charts. There are three equal highs followed by a break below support. As major reversal patterns, these patterns usually form over a 3 to 6 month period. (Source: Stockcharts.com)
Here is how Investopedia explains it:
A pattern used in technical analysis to predict the reversal of a prolonged uptrend. This pattern is identified when the price of an asset creates three peaks at nearly the same price level. The bounce off the resistance near the third peak is a clear indication that buying interest is becoming exhausted. It is used by traders to predict the reversal of the uptrend. (Source: Investopedia)
I am not a technical analyst, but I have been tracking signs of a coming sudden economic collapse, which fits the description of a major reversal. So far, I have been shown four signs to watch for to let us know we have entered the season of the collapse. I recently documented the fulfillment of two of the signs in this post, Update and Four Signs for the Coming Economic Collapse. Then a third sign was fulfilled last week when President Obama authorized a spending proposal for $1.2 billion in military defense equipment. See my post, Prophecy Fulfilled: Obama Authorizes $1.2 Billion in Military Defense Equipment. So three of the four signs have been fulfilled and I am still waiting for the fourth, which is increased tensions between the American people.
A triple top reversal pattern began forming six months ago and is still not complete, but it has already formed three of the four legs of the W shape, which is an interesting coincidence because I have seen the fulfillment of three of the four signs I was given.
To complete the final leg of the W the stock market would need one final rally. I believe we could see that soon because of two recent dreams in which I saw the value of the dollar moving up much higher prior to the coming crash. The value of the dollar often moves in the same direction as the stock market, so as the dollar moves up the stock market might move up too. These two do not always move together, but they often do.
The value of American stocks, especially those that are included in market indexes, tend to increase along with the demand for U.S. dollars – in other words, they are positively correlated. (Source: Investopedia)
If the triple-top reversal pattern completes it would be another confirmation we have reached the turning point. Completing the final leg will require a stock market rally, which might sound like a contradiction because last week I shared how Obama’s authorization of $1.2 billion in military equipment was a sign to let us know we have reached a turning point in the long-term trend. I believe that, but we should not expect to see the markets turn on a dime because volatility is normal in the stock market. Just as there were many down days during the long-term upward trend, we can expect to see many up days during the downward trend. It rarely moves in a straight line. Long-term trends are easier to see when we step back and look at a 5-year or 10-year graph.
A triple top reversal pattern began forming in August 2015. If the pattern continues, the stock market could be moving up soon, as shown in the red line below. This chart shows the Dow Jones Industrial Average from May 2015 until February 2016.
If this pattern completes, we could see the market drop sharply soon after it reaches the top, so this pattern could help us zero in on when we might see the sudden drop.
An experienced technical analyst explained to me today the final leg of the W does not necessarily have to go up as high as the first leg due to the overall declining trend. The red lines shown in this graph would be plenty high enough to qualify as a triple top, and it might not even get that high. We might also see it bounce around near the top for a month or two, just like it did in the middle part of the W. So this is not an exact science, but it can help us see when we are getting close.
Only God knows if this pattern will continue to unfold, but it appears to be well on its’ way. For investors seeking to cash in on the crash, this is something to be watching for and praying about because upward movements in the stock market bring lower prices for inverse ETF’s like FAZ, UVXY, and TVIX. The ideal time to buy inverse ETF’s would be after this pattern has completed. Investors already holding inverse ETF’s should not panic if we see a brief market rally because it would confirm we are close to a major reversal.
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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