A possible red flag on the DOW and S&P500

We owe trillions of dollars, but Crude oil is at $86 a barrel, the DOW, S&P, and NASDAQ are making new highs almost everyday and unemployment is officially at 9.7%.

Everything is great! Happy days are here again... Right?

So are the DOW, S&P, and NASDAQ all going to keep going higher forever? Or are the teachings of a dead mathematician going to reverse this juggernaut of the market?

In my new video I show you exactly what I mean and how the these indices could be very close to a very important tipping point.

This is without a doubt, one of the most important videos I have ever made and if you are concerned about your financial future, you don't want to miss it.

As always, our videos are free to watch and there are no registration requirements. We welcome your thoughts and comments regarding this posting on our blog.

All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

19 thoughts on “A possible red flag on the DOW and S&P500

  1. I disagree trade with the trend. I trade "based on my method" which gives me an edge which I developed from reflective thought from the recording of logic.

    What has worked for me is the following. Become an independent thinker by learning the laws of logic & principals of thought & with a strong commitment to reason develope a nature that allows you to be a successfull investor & or trader, then a method that gives you an edge that also fits your personality & trade with your method.

    An identity of an entity must act in accordance with there nature & can not act otherwise. A precise nature is needed to make money in the market & not everyone has it. The first step is to develope it.

  2. I'm pretty sure I've seen predictions of turn arounds in this market at "important" fib levels. None of them have worked. Folks, trade with the trend until the trend tells you not to. If you get short this market too soon, it will eat you alive.

  3. Congratulations, Adam.
    I follow your comments here in Brazil and I agree with you.
    I can not understand so much happiness into our stock markets. Investors are happy with what exactly? Thanks for showing this Fibo.
    Best regards,

  4. Hi Adam.Are you saying that the markets are way over sold and are getting ready to tank like they did in 2008?or that the charts are pointing in that direction? i guess that would line up with gold hitting 1,150.30 and dropping because they still seem to be moving together.

    1. Randy,

      Thank you for your feedback.

      What I'm saying is the markets are at a level where caution should be a keyword. I would use very tight stops on the equity markets and ride the trend for as long as the trend continues.

      All the best,


  5. Although I am amazed at how loing this dead cat bounce has lasted so far, normal bull markets or should we say uptrends can last anywhere from 18 months to 3 years. In this context we are roughly 13 months into this current uptrend, which by history standards is relatively young. Perhaps we could see a pullback, but history shows it’ll be a shallow pull back. January was a good indication of how leaders act prior to a pullback as many leaders will flash heavy volume selling breaking through support levels. As the market shook out worried longs in late January and early February we were witness to support and the continuation of the uptrend. The moral of the story, know your history and follow your leaders.

    Stick with the market leaders and forget trying to pick a top or turn in the market. Plenty of folks have been trying since March and have failed miserably. Enjoy this uptrend while it lasts!

  6. Adam,

    If we move beyond the fib numbers, how far would we have to get beyond them on all three indexes to feel comfortable that the threat from the dead mathematician was over?


    1. Marvin,

      Thank you for your feedback.

      You can get extensions on Fibonacci retracements. However I'm not a big fan of extensions.

      It was a good question that I don't have a definitive answer for you.

      All the best,

    2. This cannot be easily solved in advance because each set of fib extension are developed from the previous retracement or bear flag along a trend.

      You can think of fibonnacci extension level as specific quantum of most probable target, each attained level correspond to a characteristic strength level of the current trend under way

      So actually, a bear flag or "an energy field" is very healty to a trend sustainability.

      What usually happen, is that you get 1 to 3 most significant bear flag along a positive trend before it make a significant reversal. Now the set of fib extension level from diferent flag along a trend tend to cluster around the most likely turning point.

      That being said, in some less frequent period, a market migth become overheated after a long flag and then , turning points tend to occur over the next expected fib extension level like with gold in 2006. In the same way, close to a major turning point, the market will underperform the expected fib level and volatility should decrease.

  7. Another great video Adam. Thank you soo much for all of your efforts to help us make the easy money that members of Market Club enjoy. Do you have a special service with real time signals?

    Keep up the good work!


  8. Wow Alan..this all looks a bit scary. Should we pull out now? Then if we are patient, we can get in low time after? Will we test the March 9 lows? Now I am freaking out Alan.

  9. We welcome postive comments only here at Market Club. I am here to get more customers and try to paint a rosy picture every week of my expertise while ignoring criticism and facing the real music of my unfortunately innaccurate predictions of the recent past lol!

    Well..at least that is honest....to paint the whole picture for us..yeah right

  10. I agree with you that the 62% fib is very important and the market will probably pay some respect but the tran index wich is reputed to be a leader of other markets show a different story.

    It migth be early to get out. Another point is the yield curve, it is still very positive.

    A good tool that would be useful is a fibonacci expansion. This help a lot to possibly sort the most significant turning points well in advance.

    In this case, projection for DJ Trans would point toward 5000 - 5365 as the next toping area.
    This come from 3 projection made in apr09, Jul09 and Feb10. I could elaborate more if necessary.

  11. Hi everyone,
    When I saw this video, I was thinking of a quote I heard the other day."The markets can remain irrational longer than you can remain solvent". Although I do agree that the market is overbought, this doesn't necessarily mean that it is about to roll over.

    All indicators tell us to "lean long" now and until things "actually" change, then this trend IS your friend. Is there a catalyst that can turn this market down looming? Hmmm..right in the beginning of earnings season the market is looking good to continue it's move higher.

    Hey Adam, how many times in the last 15 months have you predicted the S&P to roll over in a video just like this one? Where are those buried now??

    Hmm.....What is your record with that? Although past performance doesn't necessarily predict future results, I would say, in your case, (since you are 0 for 4 in your S&P predictions - right?) that you should be careful before swaying a large crowd as this as to your "opionion" as to where this market will go next.

    Let's go over Adam's last three "The S&P is going to roll over" video's. Then we could see the big picture!

    That will never happen because this site is here to make money and Adam doesn't want anyone without a memory to know about recent past blunder videos. Adam calling for the S&P to roll over for the past one year plus has resulted in many of us missing the extended move to the upside. Come on Adam...are you going to hide..or is it time to come clean?

    I think I have that answer right here. I have never met a Canadian with guts yet...Just Carol King songs on the radio and mullet hair cuts Eh?

    1. George,

      Thank you for your feedback.

      I believe in all the SP videos when we talked about the potential rollover from an important Fibonacci level I said wait until the signal was given with our Trade Triangle technology.

      If some folks took the wrong message away it seems that you may have been one of them I certainly do apologize.

      The Trade Triangles have been bullish on the equity markets since March and April of 09. If you look at the trade triangles on the charts you can see that it's not only true but a fact.

      Now when you say the site is here to make money you are correct. Yes were in business is very expensive to run a website like INO.com and marketclub.com. It runs well into the millions on an annual basis. Now I am wealthy but not wealthy enough to fork out millions every year to run a free website for traders (INO.com)

      You know it's distressing to me when I hear someone like you speak and point fingers saying it's all my fault that you didn't make money from the market. As traders we are all responsible for our own actions. No one else.

      As to your last remark about Canadians, I like Canadians. I'm not sure what or who you are referring to, but I am not Canadian I am English by birth. However, I do admit I like Carole King songs.

      All the best to you, and every success in the markets.


  12. In an earlier video on the dollar, you were looking for the dollar to go through one last rally. If we are looking at a pull back in the general stockmarket, is this the possible catalyst for a dollar rally and which way do you see the pm heading as a result? Thanks for the videos.

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