I haven't issued an, "all in on the downside" alert in quite awhile. It's been mostly key level identifications that never seem to get breached, or if breached, only move back above such levels before the close. That price action warns that the market is not ready to move into a new down leg, not ready for a third wave down at multiple degrees of trend, not ready for prime time shorting. The result, a frustrating sideways market, with a few notable exceptions in the FAANG group This week the market has failed to rise with tempered inflation numbers, warning #1. Bitcoin, after a robust move up from $20K to $30K in March-April, has fallen back down into the mid $20's, trading today at $26,300 and dropping, warning #2. Today, Friday, the Dow gapped-up 100 pts at the open, but that so far has been its high of the day and as of this writing, it lost all that gain and is negative, as is IWM, QQQ and SPY, warning #3. If the market were biological, it would be time to administer a covid test, i.e., something isn't right. The S&P chart below shows an index that is well of its May 1st high, the head of a clearly bearish head and shoulders pattern, warning #4. SPY - Hourly Head & Shoulders IWM - May 4th Lows Yesterday I warned about the consequences of IWM taking out it's May 4th lows. Warning #5 -> pending. BTC Summary Breakdown of S&P H&S pattern and IWM dropping below and staying below it's May 4th low will be our triggers for add on bearish bets for coming summer decline. Next leg down should be a whopper.
