🚨 Market Breakdown: It’s Not Over Yet…
It’s not over yet. Any trade now is simply a bet.
📉 S&P 500 is now trading outside the bottom of the Daily, Weekly, and Monthly Volatility Bands – something we haven’t seen in a while. This opens the door to a potential near-term rally to retest lower band levels… but there is still no evidence of a floor.
🔵 Monthly Scores remain positive, but don’t get comfortable – back in November 2022, the Monthly Score hit a grim -9.
Indicators Chart USA
Column 1 = Momentum Reversals confirmed
Column 2 = Exhaustion Signals
Column 3 = Direction of scores as % of group
Unequivocally bearish - Only Food Bev and Tobacco accelerating.
XLP ETF we noted two weeks ago as the opportunity
🔻 US Yields Crashing Lower
There’s a theory floating around: Are equities being engineered lower to drive yields down? 👀
Either way – US TY1 is reacting sharply to the selloff.
🔚 Conclusion: Don’t Be a Hero
No signs of a floor. No reason to be brave.
🇨🇳 Let’s see how China reacts with markets reopening today. Their move will set the tone heading into the week.