We currently have the stock market decline set as a simple C wave pullback for the final leg of a Wave 2 correction. This is only valid until price stays above 233 on the SPY. If price continues lower which might be the case then we have to assume that the much hyped in the media ‘Megaphone Pattern” is in play seen below. In which case the final top in the market and multi-generational high will have occurred on July 30, 2019. Our thesis currently is that this wave 2 pullback will launch a MASSIVE money printing and Quantitative Easing scheme thereby hyper-inflating the US currency and launching stock prices HIGHER into the stratosphere to compensate for all the money printing, However, there is a lot of focus in the media about a potential ‘Megaphone pattern’ that will result in a total collapse in stocks. Time will have to tell which thesis is correct.
Megaphone setups
