SH volume confirms Smart Money is Shorting the S&P

Volume confirms everything but sometimes you have to go looking around to find the volume you are looking for. The normal volume , the Volume Profile , or in this case, the volume on the inverse ETF of the stock market/indices. Below is the three month (1q) chart for SH and we see massive volume candles confirming the tops of wave 3 and 5 from my posts on SPX . Right now I feel we are at the top of our bull trap after the Fed's press conference yesterday and the S&P will be going down and SH will be going up.

The chart below shows the RSI and MACD have turned a corner with price action on the 4H and divergence is settling in. SH might set another local low but I don't think we are going past our low of October. I see a potential inverted complex head and shoulders developing on the 4h and it looks like if it is there it will take another 2 weeks for SH and SPX to get moving.

Finally, here is SPX on the 3m (1Q) chart and we don't see anything like the same volume profile as SH. Why? Most people don't know about inverse ETFs and that you can short the broader market without margin. Either their retirements don't permit them to take those positions or their financial education has a gap. Those that do know showed their hand with the volume on SH.

Awesome analysis! Well done!
+1 Reply
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