The Big Picture The market closed out a volatile trading week about where it started, not exactly the hallmark of an explosive Wave 3 down. Either the Wave 3 down forecast is wrong, or it is still ahead and based on post-FOMC price action, the next leg down, one that takes out last week's lows, will be the trigger. Last week's lows: IWM 180.55 QQQ 305.11 SPY 405.02 As shown in the Premium and PRO option tables, initial short positions are up double, triple or quadruple from their initial entries. For new subscribers or anyone else who wants additional coverage on the short side, a break below last week's lows may be the last chance to add to shorts before a deep market plunge. Bitcoin: Leading Indicator? Bitcoin has been mirroring the broad market downtrend since the highs last November. Russell 2000 (IWM) Conclusion The next leg down is still pending. It may have already started on Thursday, but it will take the breaking down below last week's low prints to confirm. If the worst price action is still to come, than it is not too late to get positioned. For a head's up over this weekend keep an eye on Bitcoin. If it turns hard down, expect global stock markets to follow.
