If you thought market volatility was over… think again.
Former hedge fund manager (and PBRG editor) Teeka Tiwari says we’re in for one more violent move lower.
Read his can’t-miss update below for what to expect next…
From Teeka Tiwari, editor, Jump Point Trader: A lot of people are saying the market’s recent move up is the bounce we needed, and we’re off to new highs ahead.
What I say is… maybe.
August’s lows on the S&P 500 bottomed out at 1,867. Then, at the end of September, we had this retest of the lows, down at 1,871.
Now, we’ve bounced back up.
Now, it may be we’ve put in the bottom, and we’re going to hit new highs. But I think it’s more likely we’ll rally up to the resistance level of 2,020. If we close above the critical 2,020, then yes, we’ll go higher (and the bottom was in).
But if we can’t close above 2,020, you’re going to see one more intraday move lower. It’ll ratchet the fear up all over again.
That move will take us down to 1,875—possibly even 1,815—but it’ll be quick. I mean superfast… like one to three days where you’ll see just one “blitzkrieg” drop lower.
Everybody will panic, but the bottom will be in. Then, stocks will “run and gun” to brand-new highs.
Bottom line: If the markets can’t close above 2,020, batten down the hatches. We’re in for another steep decline. Prepare right now to 1) ensure your risk-management measures are in place; 2) use this fear to your advantage.