In spite of finding a lot of individual charts that look like promising short candidates, I will be the first to admit that the broad market has not given any kind of “all clear’ signal to the bears. On the contrary, looking at a trio of exponential moving averages, the bulls continue to chug this thing higher.
If any of you can remember what it was like to have a market that was permitted to trade based upon the economy, as opposed to centrally planned, politically motivated wishes of central bankers, the chart below illustrates nicely how major crossovers portend sea-changes in markets. Ah, how I long for those salad days.
SPDR S&P 500: Crossovers Point To Change
In any case, I'm already bracing myself for Wednesday’s madness. It could be the most frantic trading day of the year.