Is the market presaging something you have overlooked in your quest to support the bullish case? Few and rare are the moments when the market cooperates with high bearish sentiment and heads down. This looks serious and it would be foolish to stick with bullish guns when a severe washout could be the next market move.
@GOT XTN (transports) hit new low today. $VXN is breaking out. $VIX will break out soon if we don\’t rally, and if it breaks out, this could be the beginning of the final leg down before a bear market rally. $NYLOW is aiming for new 2022 highs today. This normally corresponds to market bottoms, but we could see a high-volume capitulation before the market can make any kind of sustained rally.
@GOT The market is killing investor hutzpah by setting up bull trap after bull trap. It will require another leg down to give the investment community the incentive to sustain a rally.
Great video, thanks. I’ll definitely be paying attention to the markets in the coming months!
If the S&P doesn’t break up out of the descending wedge you drew, would you switch to being bearish? If not, what would it take?
Traders Log, May 12, 11:54 am @GOT
Is the market presaging something you have overlooked in your quest to support the bullish case? Few and rare are the moments when the market cooperates with high bearish sentiment and heads down. This looks serious and it would be foolish to stick with bullish guns when a severe washout could be the next market move.
@GOT XTN (transports) hit new low today. $VXN is breaking out. $VIX will break out soon if we don\’t rally, and if it breaks out, this could be the beginning of the final leg down before a bear market rally. $NYLOW is aiming for new 2022 highs today. This normally corresponds to market bottoms, but we could see a high-volume capitulation before the market can make any kind of sustained rally.
@GOT The market is killing investor hutzpah by setting up bull trap after bull trap. It will require another leg down to give the investment community the incentive to sustain a rally.