There has been a dearth of individual stock trading signals of late which is due in part on more stringent risk:reward analysis and in part on simply a lack of reliable set-ups. That is not the case in major indexes which are all exhibiting characteristics associated with changes in trend. The risk side of the equation is relatively small, a run up to new highs, which are not that far above current prices would change the reversal down narrative to neutral/bullish. A continuation lower increases the likelihood of an outstanding trade in 4-8 week index puts. As the title suggests, a chart is worth a thousand words, so let's get to it. ----------------------------------------- Updated charts as of Friday's close, plus a few more all of which set out a strong probability of lower prices next week and likely beyond. DJIA - Friday's long red bar looks like a move toward the lower trendline with key support levels below: ARKK - Cathie Woods' Disruptive Innovation ETF, already on an Intermediate Term Sell, touching the top of a down channel and turning hard down. VXX - Friday's last hour pushed this volatility index above its intermediate term trend channel, consistent, if not predictive of a ramp up in volatility and falling off the cliff resolution of the stock market's immediate future. S&P 500 Buying Climax: Higher Weekly High; Lower Weekly Close I could go on, but the message is the same across the board. It doesn't mean the market has to go down from here, but everything above strongly suggests that is the path of least resistance. We will know soon enough. Both the PRO and Premium services have exposure to the downside. If the market does make a move lower we will be adding to those short positions. Tesla's earnings are due out in about a week, if the market holds up until then the shares should run higher. TSLA is the largest holding in ARKK, so the latter does act as a hedge against our TSLA calls, as well as exposure to the downside in most of the darlings of the past two years.
