The charts below strongly suggest the Wave 2 top is in and that Wave 3 Down is beginning what should be a multi-month decline across all equity indices. These S&P charts above show price has turned down from a Wave 2 top, but, have not yet fallen below the Fibonacci reversal windows so as to confirm a new leg down. The Russell 2000 tells a different story (continued below chart): As set out in late Friday's Premium Update, not only has IWM fallen out of the reversal window, but in so doing it has also generated an Intermediate Term Sell Signal. Short positions (IWM Sep 16th puts) were recommended in Friday's Update, and more recommendations are expected as the other indices follow suit. QQQ - Fresh Sell Signal Pending QQQ is one bad day away from generating a Trend Model Sell Signal (down red arrows) as well as falling of its Fibonacci reversal window and back into its downtrend channel from the 2022 tops. VXX Buy Pending We will be looking to go long VXX Sep 16th calls on the generation of a fresh Buy Signal on VXX 3 hour Trend Model. Please check the website anytime VXX pushes up above $22 - and stays there - during the trading sessions next week. Guest Charts I can't take credit for these charts below, but they tell the same story as my own charts set out above and coming from other sources lending credence to the Wave 3 Down message being given off by the stock market: A hard fall dead ahead and into the seasonal Sep-Oct crash window. Source: Zero Hedge This chart was posted on July 27, three weeks ago, at EWI, suggesting the path for Wave 2 via a 1937-1938 analogue: Source: EWI This was followed up by a "You are Here" chart late Friday: Source: EWI Source: Twitter (Mac10@SuburbanDrone)
