Leading off this weekend is IWM, the Russell 2000 ETF, which made a new weekly low on Friday's close. The significance is that we how have five short-term waves down from the Dec 1st Wave 2 Top, and our first confirmation of Wave 3 down at multiple degrees of trend. The rest of the market and respective indices/etf's will soon follow. IWM 30 Minute Short-term The week ahead has CPI due out Tuesday and FOMC interest rate policy statement out on Wednesday, so whatever calm and/or order we saw this past week should be out the window by this time next week. Whatever happens (or not) in the coming few days, any benefits of doubt should be given to the multiple Wave 3's down thesis because if it's right the reward will be massive. For now, the evidence for a steep decline is about as compelling as it has been all year. The Previous Leg Down The last Wave 2 top was in mid-August and the decline coming out of that high allowed us to build a bearish leaning portfolio over several weeks. The screenshot below is where that portfolio stood near the mid-October market lows: Blue Line Premium Option Positions: Oct 13, 2022 The difference today is that the anticipated next leg down will be faster, deeper and more profitable than the August-October leg down. We already have some initial positions in both the Premium and PRO Services, with more to come as more key levels get taken out to the downside. Stay tuned via daily updates and trade Alerts. CURRENT CHARTS & STRATEGIES DJI SPX: Key Level = Break below 3850 IWM Intermediate Term: Next Key Level = 174 QQQ: Next Key Level: 270 VIX UVXY Blue Line PRO Service: New UVXY Trade Pending TLT A TLT close below 104.00 would not bode well for anything, except maybe TLT puts. More on this if necessary. US Gov't Bonds 10 Yr Yield Both CPI due out pre-Open on Tuesday, and then the Fed interest rate policy spelled out 2:00 pm ET on Wednesday should affect this chart in a big way, which in turn will affect both TLT and the rest of the charts set out above in the stock indices. Yes, next week is a big week as 2022 moves toward its climatic ending.
