Today the SPX reached a gain of 100% growth from the March 2020 bottom. One of the farthest and fastest gains in the history of the US stock market. The last time something similar happened was the tech stock mania 1999 to early 2000. The result of that bubble bursting was a nearly three - year bear market.
Momentum for the SPX as measured by the daily RSI has been deteriorating for several months. This is only the tip of the iceberg. I've documented in my other writings the mind boggling bearish divergences on Advanced Decline line, New -52 - week highs, and Bullish Percentage Indices.
The current weak internal momentum is similar to what was happening with the SPX and Nasdaq Composite from May to July 2015. Subsequently, in August 2015 there was a global mini-crash.
Its possible the SPX is completing five Intermediate Elliott waves from the 03/23/20 bottom. If so it implies a multi- month decline could be imminent. Its also possible the SPX is completing five Primary Elliott waves from the March 2009 bottom. If so it implies a multi - year bear market could be imminent.
Those initiating bearish positions on US stocks in July 2021 could soon be reaping an abundant harvest of profits.
Note the detailed market analysis presented.
This I believe is his first short recommendation on the S+P 500
from someone who was bullish, and right for most of the multi year bull market.
The chance of additional micro-crash or more like the recent one on 7/8/21,is certainly possible.
markrivest
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@The_Unwind,
Thanks for the compliment. I've been recommending short SPX for several weeks.
Please see my "Red Alert!" post.
This I believe is his first short recommendation on the S+P 500
from someone who was bullish, and right for most of the multi year bull market.
The chance of additional micro-crash or more like the recent one on 7/8/21,is certainly possible.