July 7, 2017 “Tesla (TSLA) Last 14 Trading Days Since June 23- Fri July 7, 2017 PRELUDE TO WHAT’S ABOUT TO HAPPEN TO THE BROADER MARKET S&P 500 ($SPX)!?!?… OUR (TSLA) & (SPX) CHARTS BELOW SAY YES!!!!….

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Friday July 7, 2017.1159.pm.edt

Tesla (TSLA) to say for the very least has had an extremely interesting (dating back to June 23, 2017) 18 trading days!

Like, we have stated so many times….Tops don’t come at areas of consolidation (illustrated in the TSLA chart below) $344.40-$350.62 they come after short term parabolic moves (illustrated in TSLA chart below) $350.63-$386.99 where short sellers succumb to panic buyers (resulting in a short squeeze) ¬†TSLA $352.51-$377.70 before panic buyers that almost never sell ( illustrated in the TSLA chart below $377.71-$386.99) where big funds sell and turn panic buyers into long term (if they don’t sell and take a loss) long term “Bag Holders!”

As the TSLA chart below illustrates loud and clear this happens time and time again…

TSLA upon hitting its all time high of $386.99 (illustrated by the chart below $386.99-$306.60) less then 8 TRADING DAYS LATER! (it happens fast on final tops that result in quick and dirty reversals!) on over 10 times normal average volume to as low as 306.60 going right through correction territory -10% off 52 week high $386.99 = $348.29 to even lose Bear Market -20% off ¬†52 week high of $386.99 =$309.59 to go as low this past Thursday of $306.60 before seeing shorts cover sub $309.59 and go long creating a “Dead Cat Bounce” that should see TSLA fill its open gap from $350.44-$352.49 before once again losing former all time high of $350.63 and plummeting again repeating the previous process on a new leg lower to its current 200 DMA $249.51……




…..The Telsa (TSLA) Correlation Prelude to the Broader Market S&P 500 ($SPX) is illustrated in the ($SPX) chart below by its key areas of Thursday’s key channel cross trend support hold low of 2,405.70 (TSLA $334.20) and ($SPX) 2453.82 current ($SPX) all time high (TSLA $350.63) current resistance ($SPX) then would go parabolic over 2,453.82 to as high as 2,502 (TSLA $386.99) before exactly as TSLA did this past week, ($SPX) after topping our predicted 2502 would then also plummet to sub 2,000 to as low as 1,991 right through correction territory of 10% off 2,502= 2,251.80 thus erasing 100% of the so called “trump rally”( 2,000-2,443) finding Bear Market Territory sub 2,000 at sub 2.001.60. The trigger for all of this is of course all set up technically by “the machines” trading over 70% of the current broader market’s daily volume as well as fundamentally and psychologically by the GOP3 (GOP3= Pres/Senate/House Control) lack of passing Health Reform and Tax Reform before the August 30, 2017 Break. Furthermore, “Yellen & Co’s” (FED’s long term plan to raise interest rates 3 times 2017 (al ready have had 2) and 3 in 2018) post QE 1/2/3 (QE 1/2/3 where FED Quantitative Easing Programs 2009,2010,2013 buying govnt debt) that fictitiously propped up the current broader market S&P 500 ($SPX) and USA Economy.

What. you won’t hear on CNBC is after QE 1/2/3 the only economic solution to ward off hyper inflation, something the FED has been worried about post QE 1/2/3 is to increase interest rates over a 3 year period on a 0.25 per 3-6 month plan. The FED had no choice to sell the debt in bond auctions and thus reinstate bank earnings in the process. Therefore, regardless of the USA economy and the broader market S&P 500 ($SPX) the FED will keep increasing interest rates over the next 3 years just as it did in 1971 pre Recession of 1974.

However, getting back to the charts… First thing First … Today’s June Non Farm Payrolls (JUNE 2017 LABOR REPORT) that beat by over 44,000 new jobs (seeing average hourly wages increase but in the process saw over all unemployment increase to 4.4% (“Max Employment” Reached April 2017 Labor Report) is almost always less then 12 months later is followed by a USA RECESSION) was the reason why the index as the ($SPX) chart below illustrates held key 2405.70 support in the channel and now is set up with today’s close over 2425 to go parabolic and right up and through 2,453.82 current all time high to top out at 2502 before plummeting to sub 2001.60 to as low as 1991.


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