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SP500: Approaching Bubble Territory?? Part 5: I am Out of Stocks

SP:SPX   S&P 500
In my series of posts "SP500 Approaching Bubble Territory' I was discussing my arguments for a major bearish move, and i believe we are very close to my awaited point. I am waiting for final confirmation signal which may occur today or Monday to post my short position. For now, I close any long position and cancel any long outlook.

Market Breadth:

Swings from excessive bullish and bearish sentiment have been a good contrarian market indicator for the past 6 years. Every time the indexes of stocks above or below 200-days Average reached an extreme of 90-100 percent a correction in SP500             was close.

Instances where the index started falling, diverging away from the SP500             index (indicating internal strength is weakening) were bearish signals, as at least a hefty correction followed. The chart below Illustrates these divergences, where periods of prolonged divergence followed by a more sever downside move, while minor divergences followed less severe corrections.

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