Stock Market End Game Approaches - Are You Prepared?

The following chart is a modification of some of Martin Pring's work on the S&P 500.

Note that a breach of the trend line on this monthly chart is a clear loud warning that more down side is imminent.

Two targets stand out but are unconfirmed currently.

If the 6 month MA is crossed it is likely that the 1700 level show as target 1 will be the market objective.

If the 6 month MA crosses the 13 month MA, than look for the 50% fib level at 1400 or lower at target 2.

As the market continues to unravel, we can expect to see some funds rotate into bonds initially.

However, later this summer and into the autumn time frame, we may see funds finally rotate into precious metals as bonds also look questionable given the exceptionally high debt levels most western countries are burdened with.

It is my view that the 2008 financial crisis is not at all resolved, and the next two years the debt crisis will hit the bond market as well as the stock market.

Only will a great deal of pain will the least loved sector in the stock market (precious metals) get some respect.