That is a 4000 point head and shoulders on our index in the making. Risky risky stuff going long now. And a realistic scenario too - since it will take us to January lows - which is where the global markets are sitting at right now anyways. Two big downward gaps have taken us here, and the only thing propping us up is a week's worth of price resistance in early june. In my experience, when we retest resistance this violently, it hardly ever holds.
this volatility is just insane! A couple of warning bells for me - 1) Europe is buying rumour here, and not fact, so upside potential of a positive greek announcement is limited, but downside swing of a no-deal announcement most definitely isn't. 2) The US ain't sharing the love - with their stocks unable to get out of the starting blocks 3) China - oh China! 30% of the market cap of the index is suspended from trading? How can you possibly trust a heavily leveraged Chinese market rally where probably $8 trillion worth of stocks cannot participate? I don't think we have begun to see the lows. So my plan here? In volatile markets - don't chase the rallies. The only successful strategy is to be contrarian.
China is putting in a law now to prohibit people from selling within 6 months. This is how the central banks are now "controlling" crashes. Would you want to buy in a market that could drop 30% again and you were forced to hold for 6 more months?
All of these issues will be settled possibly by end July into August, will be moving out of cash end July , into September .Fed rate hike also to play out. As for the charts , reverse head and shoulders forming which is a double ZIGZAG Elliot wave correction , Trading thru 47000 to above 48000 is where correction will be over