Key Takeaways

  • Monday’s break of May lows is a structural negative in Equities, TY, Cryptocurrencies
  • Treasury yields pushing up to yearly highs along with US Dollar important
  • Short-term capitulation in volume with huge negative A/D bias
The video in this report is only accessible to members
The video in this report is only accessible to members
The sudden break of May lows across Equities, Treasuries and Cryptocurrencies means that a long-lasting bottom will now be likely postponed until late June. While many in the Media are discussing a “new” bear market for SPX, many of us realize that this has been in place for some time now given more than 60% of issues are already down more than 20% off 52-week highs. Important to note that numerous divergences should be forming now that are encouraging, regarding percentage of stocks hitting new lows being far less than May, and momentum being at higher levels than last month, which are all constructive. Meanwhile, more than 90% of all SPX issues are now below their respective 50-day moving averages. This weekly chart shows the prior Fibonacci retracement levels having held in January and May, and Monday’s breakdown puts the 50% retracement area (not a Fibonacci, but important) now firmly in focus. Overall, it’s right to look at 3500-3600 as being very much possible now that 3810 has been broken....

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