The closing of the Dow at 15666.44 was below support at 15824.73. Additional support lies at 15176.26 and a closing beneath that level will warn of a break down to the 14334 area. We do have four Monthly Bearish Reversals under 15000 with a gap thereafter down to the 13650 area, and the long-term support […]

Dennis Lockhart, President of Federal Reserve Bank of Atlanta, stuck to his guns late Monday by stating that he still expects the Fed to raise short-term interest rates in the next few months. I have been warning that without higher rates, the Fed is facing a pension crisis because rates have been kept way too low […]

COMMENT:  I carefully read through all your missives you had sent over the weekend, highlighting the importance of Monday for the Dow, and the levels given. You even said “Pay attention now Monday could be the intraday low. The open will be crucial”. And the low so far indeed did occur in the opening few […]

The Asian contagion that began in Shanghai has now decoupled, leaving Monday the 24th as the low in Europe; it is expected to be the same in the States. A three-day bounce is now possible into Thursday, but there will be another retest of the lows just to make sure traders do not think it […]

I keep telling people that the central bank of China is far more professional than any other central bank. When I was invited there during the Asian Crisis, I was stunned to be invited over some academic. When I got there, I found that everyone had experience. They had worked on dealing desks around the world and […]

The world share markets remain volatile yet should begin to stabilize now showing tentative signs that the panic of Monday is starting to subside. The reported epicenter of Shanghai for the rout, however, has suffered another big sell-off. The mayhem in China’s equity markets showed no signs of abating on Tuesday, as the Shanghai Composite index […]

In the Dow, we can see that Energy bottomed out so we have a counter-trend at work right now. We do have a pair of Daily Bearish Reversals at 14769. We continue to see the prospects that today will perhaps remain as the lowest closing. Nonetheless, a new intraday low is possible given that we […]

Despite the fact that the rally in Shanghai was by no means a real bull market, regardless of the percentage move back up, keep in mind that what goes up big also goes down in a hurry. This market can make new lows in today’s session, taking a hint from the USA and Europe. Our […]

QUESTION: Mr. Armstrong; In Munich, you said the US share market had peaked in euros and the low looked to be in August. Is that view still on track? WG ANSWER: Yes. When you plot the Dow in euros, the high was March, not May, as it was in dollars. This suggested that August would […]

  The leading story for the sell-off has been Wall Street’s shock by the mounting worries over instability in China and emerging markets. The tumultuous decline has sent investors clamoring to race into safe-haven assets amid the confusion. Why anyone missed this is really befuddling since China’s share market peaked in 2007 and the rally […]