Embracing the shift: Key indicators signal coming market changes

This past week felt like a bear market to me, and I’m sure many of you feel the same way. Yes, crypto prices are down, but more importantly, the market sentiment is pretty boring right now.

However, with the changing of seasons and the Gann Time factor we are dealing with, I think that will all change soon. If you haven’t watched our Wednesday Update yet, I recommend you watch it here.

Otherwise, let’s get straight to the point, because my feelings haven’t changed.

First, let’s look at the stock market.

Be prepared to buy on pullbacks here. As you can see, we have two symmetrical up moves. Each move is 20 calendar days (not trading days) and happens to be 310 points. Therefore, the two symmetrical moves in time and price coincide with the red line marking the SPY IPO 150 degree date. There is an arrow on the red line indicating that this is the date of the last degree calculation, and you can also see that this is a short-term high.

We also noticed that many people pointed out that the RSI of QQQ is at a historical high.

All of this lines up with the natural date of the Summer Solstice. This tells us to be ready for a trend change. The good news is that our election cycle seasonality still tells us that the market has room to run , as the above chart shows. We have the next natural date on July 7th, which is a Sunday, but will perfectly coincide with the previous 10-day correction, and if we correct here, we may reach a low near the next natural date.

As for cryptocurrencies, the setup is almost exactly the same, but in the opposite direction.

Again, our natural date comes tomorrow and it coincides with price. Note the daily RSI in the orange circle, these levels mark the lows. We also have a bullish reversal setup, if you look at the blue arrow, price is making higher lows while the RSI is making lower lows. This tells us that BTC is extremely oversold in the short term. Coupled with the fact that price is right at the intersection of the green 1/1 line up and the black 1/1 line down and is close to our date, I think this is a significant low at least in the short term.

On the other hand, ETH is stronger than BTC

I again encourage you to watch Wednesday's video where I talked about signals and timing. As you can see, we are outperforming BTC and still holding onto our three-day time reversal. So if this market takes off, expect ETH to outperform.

Finally, let’s review last week’s teaching points.

Last week, I demonstrated how to find bottoms on a couple of meme charts.

Below is a chart of TRUMP vs. actual results from last week

As you can see, many meme charts look like this. The key is when the chart forms lower highs and then lower lows, panic is 100% the way there. So don't buy on the second bounce, sell if it breaks below the low of the first correction. Another important point is to wait for the three leg decline to complete before buying. Then look for the signal candle.

Here is another great example of the current leading meme, BASE’s CHOMP.

I can almost guarantee it will retest the $0.25 level. It breaks down, forms a lower high, then a lower low. There will be a panic. Buy at this time.

This is important because many charts look like this and many people keep trying to guess and buy the bottom. Forget it. In fact, the bottom is easier to spot if you know this. Wait for three declines and then wait for the signal candle. You now have a safer way to buy the bottom. Stop guessing.

So while I am optimistic about a rally in the coming days/weeks, be wary of buying into a chart like this. TRUMP will be a good one to study as the debate approaches. To me, it looks like it still has one last leg down to go, so the key will be to see if it can make a higher high during the upcoming debate week, if not, then there will be panic buying.

It’s that simple, for those altcoins that have been falling for weeks, zoom in to the weekly chart, look for three down structures, and then wait for the signal candle on the weekly chart. This will be safer than trying to pick the bottom.

Overall, I think we are at a turning point. Be prepared for a rebound, but don't bet everything on it. We are still in a very tough and volatile market that will probably last until August.