Thursday, August 10, 2017

Charts 8/9: Setup now for a huge sell-off

We closed right at the perfect spot for a gap and go in the morning.

We could see a 4-5% sell-off tomorrow, retracing the entire five-wave advance from SPX 2328!  Relief would follow next week, at least until mid-session Wednesday, when we rollover again.


The big picture, including the debt-ceiling market crash in late-September (and face-ripping rally into January):


Tuesday, August 8, 2017

Charts 8/8: Bear sighting

It looks like that diamond-pattern that held up for several weeks morphed into a rough ending-diagonal shape and ... ended.

Awesome price action with a key-reversal day, selling off on heavier volume than we had on the rise.  We are now off to the races.

The next order of business is to drop 200 handles to the 2280 level on the S&P 500.  The sooner we get the VIX up to 20, the sooner that the leveraged volatility shorts will be crucified.

The Fall crash gets going in later-September when the government hits the debt-ceiling wall and commences shutdown.  I am very much looking forward to this waterfall -- will it stop around the earlier lows around 1800 SPX, or plummet all the way to the 2007 (year) high of 1576?

SPX 2Y fall crash

Good luck to all ... bears!

Wednesday, August 2, 2017