Japan’s Nikkei stock market plunged 3.5 percent and China’s Shanghai stock market tumbled more than 3.2 percent, while China’s other stock market, the Shenzhen Index, collapsed nearly 4.5 percent.
Weak Stock Markets Accelerates Flight To Gold
There was weakness elsewhere in Asian stock markets and this sent money flowing into the gold market as gold surged on worries that global stock markets may finally get hit hard.
And Japan’s Nikkei Is In Real Danger
If Japan’s Nikkei breaks down, their stock market could plunge more than 1,100 points very quickly (see chart below).
The charts below are from top Citi analyst, Tom Fitzpatrick. First, look at the chart of the S&P 500, which Fitzpatrick noted had an inverted hammer highlighted in red (see chart below). This should be accompanied by further weakness in the S&P 500.
Also, below you can see the chart of the VIX, which posted a bullish outside week (see below). This would indicate a sharp rise in the VIX is coming along with significant further downside action in the S&P 500.
And below you can see the chart of the U.S. 10-Year yield, which breached supports. This signals further upside in the bond markets and a further drop in yields. This would also correspond to further weakness in global stock markets (see below).
If market turmoil unfolds, it will be very interesting to see how gold and silver trade, especially if global stock markets accelerate to the downside.
To hear what John Embry is doing with his own money right now as well as more about the coming plunge in the stock markets, surge in the price of gold, silver, and the shares, CLICK HERE OR ON THE IMAGE BELOW.
***Also just released: John Embry: We’re In The Endgame – Here’s What I’m Doing With My Own Money Right Now CLICK HERE.
***KWN also released an absolutely jaw-dropping interview discussing the gold and silver markets with the man who advises the most prominent sovereign wealth funds, pension funds, hedge funds, and institutional funds in the world and he discusses the gold and silver markets, coming chaos and much more! To listen CLICK HERE OR ON THE IMAGE BELOW.
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