Mini or Maxi Crash - which do you expect? De Ja Vu 2016 $SP500

The only question today is how much of a crash will we have to endure, or should I say profit from as traders? The problem is as a short seller, it is the toughest way to make money. The market goes up by default as there are millions of people working every day in these companies to add value and make profits and earn the money that feeds their families and gives them an improved quality of life. It is in the vested interests of humanity that the stock market goes up.

However, there are also times when the people investing in those companies lose their confidence. Negative sentiment and fear in the stock market kicks in and suddenly we are into panic mode. This linked fear and greed index uses the amazing tradingview data to help you understand the market sentiment.

But, when we take a look at the technical analysis this backs the fear up. The supply and demand as shown in the technical indicators through negative divergencies is clear. Let's compare the mini-crash of 2016 with today. On the left of the chart we see:
1. Stock price rising
2. Flat RSI
3. Strong CMF negative Divergence

Fast forward to 2018:
1. Stock prices rising
2. Strong RSI negative divergence
3. Strong CMF Negative Divergence

The technical analysis points to at least a mini-crash, and who knows what potential size of a maxi-crash.

Note that point 4 on the right sees price on the weekly chart enter the Ichimoku cloud from the top, which is never a good sign.

I am nearly a perma-bull, but just not right now. Hold on to your pants it is going to be a ride.

Hit like and follow if you like this analysis.