Those who have been paying attention this week
have recognized that the S+P 500 has violated it’s Ascending Triangle
Technical Pattern, on the Daily Chart
with the market leading semiconductor stocks leading the selloff.
I had warned you about this in my last post, if Nasdaq 100 Futures were to break 20000.
When the market’s strongest stocks start to finally give way, there’s high risk on the horizon.
“Sentiment” Observations, also show a marked warning message.
1. Market Vane’s Bullish Percent Poll of Traders
is now at 71 %, this week, nearing a record level of bullishness for stocks.
When this many are bullish, it’s actually frightening
2.Delta Market Sentiment Index, Internal Measure of Strength
( Published Weekly In Barron’s)
now shows a reading of 47.3% importantly below 50 % Demarkation Line
When that occurs, risk become elevated, and stocks should be sold.
If the S+P 500 rallies next week back to the violated wedge trend line,
use that opportunity to get short the market, while theres still a chance.
If the market starts to fall,.. it could cascade straight down.
THE_UNWIND
WOODS OF CONNECTICUT