In today’s update, I show the outright fear and carnage in the markets over the last three weeks. However, I show why Hawkeye believes it’s not time to panic, given the 30% plus drop in the markets. I know it’s scary, but now is the time to buy, and I’ll show you why.
From the charts
Looking at the daily S&P futures chart (ES), we show the 30% decline in only three weeks. This blood-bath was identified beginning back in December 2019 when we saw declining buying pressure as the markets kept making new highs. In healthy markets, you see increasing buying pressure as price climbs. Our V-Swarm software showed this very clearly, keeping us on the right side of the market.
We also see from the daily, weekly, and monthly charts that price is currently entering strong support, or a confluence demand zone (Hawkeye Zones). This is historically a highly probable place for buying activity. We would expect prices to rebound from here, or move into an accumulation/distribution phase. This is very evident from the HUGE daily price bar printed on 12 March without much volume support (Hawkeye V-Swarm).
Lastly, without volume support, the markets can’t continue to go down. We also see from our Hawkeye Fatboy that the markets are extremely oversold and are due for a cycle back to fair value. Additionally, the monthly chart shows that price has come down to the support trendline in place since the market crash of 2008. This is a strong support area for the current bullish trend.
The Hawkeye Perspective
I know it’s scary, but now is the time to buy. Now is the time to start taking the funds you set aside for just such occasions, and start to buy what you would have been buying just three weeks ago. Except now, you get a 30% discount. Learn to trade the Hawkeye way.