Hey Richard; Note many key important stocks testing critical support. If it breaks, look out below.
Also, rates and dollar will seriously pressure equities should they continue uptrends. Op Ex week will add to any break lower (which is overdue). With the massive treasury issuance a big rate spike higher is very possible, which could trigger a panic equities sell off. Note that the AI bubble looks to be breaking (NVDA/MSFT/APPL/AMD/SMH). Weak VIX at support. Failed rallies/gap ups ominous for bulls. Critical week will determine next trend move. Been all bulls for too long. My bet is for equities down. (hard)
A continuation bull trend will need dollar/rates to reverse lower. For that, OIL needs to reverse lower. A gap lower within 2 days of an overbought high ALWAYS has resulted in a big drop. We have seen that. Bulls have expended a lot of energy limiting the minor correction in the face of leadership weakness. How much more do they have in the tank? Sentiment weakness off of extreme greed strongly suggests their energy is waning. Yes, critical week upcoming. Great setup for some puts, IMO. I for one am all short here, playing for an overdue breakdown. BTW, bubbles pop hard, and AI has broken! PS: long Gold highly recommended. And yes, that's financial advice, lol. Best Don
Hey Richard; Note many key important stocks testing critical support. If it breaks, look out below.
Also, rates and dollar will seriously pressure equities should they continue uptrends. Op Ex week will add to any break lower (which is overdue). With the massive treasury issuance a big rate spike higher is very possible, which could trigger a panic equities sell off. Note that the AI bubble looks to be breaking (NVDA/MSFT/APPL/AMD/SMH). Weak VIX at support. Failed rallies/gap ups ominous for bulls. Critical week will determine next trend move. Been all bulls for too long. My bet is for equities down. (hard)
Agree with your observations, next week should be interesting.
Question is will it be just a basing period or a more serious decline that needs a lot more time
A continuation bull trend will need dollar/rates to reverse lower. For that, OIL needs to reverse lower. A gap lower within 2 days of an overbought high ALWAYS has resulted in a big drop. We have seen that. Bulls have expended a lot of energy limiting the minor correction in the face of leadership weakness. How much more do they have in the tank? Sentiment weakness off of extreme greed strongly suggests their energy is waning. Yes, critical week upcoming. Great setup for some puts, IMO. I for one am all short here, playing for an overdue breakdown. BTW, bubbles pop hard, and AI has broken! PS: long Gold highly recommended. And yes, that's financial advice, lol. Best Don