I also told him I thought the recent rebound upwards would not go further than 2735 to 2740.
The rally back from the February lows is an almost perfect 50%.
As the S&P-500 rose the lower top graph was falling. This divergence strongly predicts lower prices.
The two charts on the bottom, chop and chop zone, indicate trend.
Green means up, but the line above the green indicates no trend when it rises. When it hits the upper line there is no trend.
When the-S&P-500 halted at a retracement of 50%, and the chop zone line hit a top, this indicates loss of trend.
One last negative, the-S&P-500 failed to get above the cloud on its rebound. Very negative indeed.
This suggest a market drop .
Also, I follow-VXZ. This is a mid term future of the-VIX for the S&P-500.
This was rising. This works in the inverse of the-S&P-500.
So, as I wrote about three weeks ago, I thought then that the-S&P-500 would retest its February lows.
I still believe this to be so.
May all of your trades go well.