…A giant top started to form in the S&P 500 index with the January 2018 peak, which means that it has been setting up for a bear market for fully 16 months now and the market is now in position to crash. Frankly, it’s imminent.
What very often happens when markets crash is that key support is breached on a Friday, after which traders have the weekend to brood about it and many decide to hit the sell button the following Monday, and a near tsunami of sell orders hits the market at once forcing a steep self-feeding decline. That is what looks set to happen this Monday.
The impending crash will be much more severe and have much more serious consequences than any hitherto, because of the catastrophic debt overhang that has built up. In this situation gold will become the best investment because it has an intrinsic value that cannot be eliminated…
On Friday…the Precious Metals sector showed strength…[but] this may just have been a “pop” on the part of the PM sector, which could yet turn and drop with the market. We will have to wait and see what happens next week. If the broad market drops hard and the PM sector advances it will mean that it has already acquired safe haven status, and in general it will be safe to buy the sector with stops beneath recent lows.
To conclude, a devastating crash looks imminent and full defensive mode is the order of the day.