The levee broke today. Is the dam next? The market started the session weak and never looked back as price probed lower all the way into the close.
S&P 500.png
DWCPF.png
Volume was elevated. The 50 dma on the S&P 500 was crushed. The 200 dma on the DWCPF was annihilated. It doesn't look good for the bulls, but the 200 dma has not been broken on the S&P 500. The action suggests it just may get tested. Futures are already red; though not by a lot.
The OEX is neutral. The CBOE is bullish (from a contrarian perspective). Breadth is falling hard. Breadth has not often fallen as hard as it is right now. More to come?
I've been warning for a few months (on and off) that this market is going to collapse at some point, but I could not predict with any precision when it might happen. It may be in progress now, though I am sure there are those out there that will say a low should be in or very close. That's possible, but I am not optimistic.
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