INDU Dow Industrials Daily Chart Two Years of Gains Disappear in a Few Days

Keystone has described the topping process over the last year for the stock market and the nasty negative divergence and rising wedge pattern that forecasted serious trouble ahead. The collapses from rising wedge patterns can be quite dramatic as the chart above illustrates. The Dow is back to the early 2014 and late 2013 prices from 19 to 22 months ago, may as well call it two years ago. All the gains and euphoric party on the way up since late 2013 are erased. Traders drinking Fed booze each day, smoking BOJ crack and injecting ECB heroin has resulted in the addict lying on the dirty linoleum floor going through withdrawal.

The Dow low this week is 15370. The Dow prints 18351.36 on 5/19/15 when the wine was flowing like water. The loss off the May top to this week's low is 2981 points, almost 3000 points a collapse of -16.2%. This behavior shakes confidence and will chase the retail investor away from the stock market. The wealthy (with large stock portfolio's) raped the system for all it is worth over the last six years making themselves filthy rich courtesy of the Fed's easy money policies. Fed members do the bidding of the large investment banks and elite class in America since once they retire they are rewarded with lucrative speaking gigs for their loyalties to the wealthy class.

Stochastics are oversold and positively diverging. Money flow is positively diverged. So a dead cat bounce should occur but the weak and bleak RSI and MACD point to further lows in the days and weeks ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.