One common trait of hyperinflationary collapse is a parabolic rise in the stock market as people rush in to buy stocks in order to protect their wealth from collapsing fiat currency. Here below is a chart of Zimbabwe Industrial Index during their recent hyperinflationary episode 2005 - 2007.
Whether or not the US stock market is telegraphing a hyperinflationary collapse only time will tell, but it is starting to go into a parabolic move up.
Zimbabwe
Current trade theme is Long Equities - Short Gold, Silver and Commodities. Gold and Silver charts are really bearish, telegraphing potential large down days coming.
Currencies of commodities producing countries, Australia & Canada are also very bearish.
It looks like gold and Silver may open with a gap-down on Monday below prior liquidation low. If so, look for selling algorithm to kick-in with maximum intensity, The trend should continue until it ends, up equities, down metals and commodities. A reversal in trend will be fast and furious.
For Monday, Supports in NQ are 3015 and 3005 (1658 and 1652 in S&P).
-- Pullback that can stay above these 2 support zones implies the uptrend is still intact, llok for rallies to continue.
-- A clear and sustained break below supports implies it is going into consolidation.
