CRAZY

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CRAZY, right?  What a difference a day makes. Traders  that jumped from Long to Short on Tuesdays drop have likely been burned, and that may or may not change going forward. Lets take a look...

SPX WKLY- I love this.  🙂 

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This weekend I showed this weekly chart. 

1. Possible top Friday

2.Vix at lows 

3. SPX Wedge ,  so I said to expect a drop. 

SPX WKLY 5-22

SPX WKLY -  Monday was a holiday, so this is the wkly after Tuesday & Wednesday.  The drop & recovery -  Boom, Boom.

SPX WKLY 5-27

On a daily -  you cant even tell anything happened.

SPX 5-27  

NEXT...

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Timing

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It certainly looks obvious that various sectors are starting what could be a significant decline.  I pointed out the VIX and the elephant in the room last week, indicating that one should be coming, it was just a matter of time.  Lets look at the charts ...

In this chart of the VIX I was pointing out that tops (maybe just temporary ones) often started with the Vix in the 12-14 area. It also did a reversal Friday

$VIX  

So this is what has transpired...

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There’s A Chance There Is A Change

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I was away from my desk Friday and upon returning to the charts on Monday, I am seeing some changes that I want to discuss. Lets start with our regular  market review. Lets take several views of the markets,  both bullish and bearish,  while remember that  ELEPHANT IN THE ROOM discussed here last week.

SPX

SPX 5-22

But we keep this in mind too as we remember that Elephant in the room...

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