THE PICTURE BELOW IS SELF EXPLANATORY
As you can see everything is down on the weekly SP 500 chart. I do sense a big drop is coming, maybe yesterday started it I don't know. The daily chart still shows a buy on this dip at the moment. However, if we just continue to decline straight down, it will negate the daily uptrend in the trend oscillators. I do think there has to be some type of catalyst if we are going to get one of these mega drops like some people are calling for. As is always the case, I have no idea what that might be. It is not likely to be an economic story since most of those stories are already terribly negative and we have not broken down sharply yet. Maybe this means there will not be one and as a result, we will not have a huge breakdown. For now, the weekly chart is down, so it is sell the rallies here until this changes. Maybe the daily chart will generate a buy entry that will take us into a sell on the weekly.
The dollar has now by my definition entered a weekly downtrend. We have a gap below the lines as I have talked about before. This means sell rallies when this develops.
Looking at his chart you can see both trend oscillators are down along with the price move, leading the way here. Things do not look good here to me. Stocks and the dollar are moving together. Since this has been the historic relationship it tells me that not much market manipulation by the PPT is currently happening. They have created alot of unusual bed partners the last couple of years with their tinkering. We have to expect them to show up again, but you have to wonder how much ammo they have left. The Larry Williams forecast shows more down here for the next few months. Since it is right on track with this market, that is what I am expecting as well. I see no current reason to be bullish here other than maybe on oversold bounce which we probably will get soon.
The last chart to look at is Copper which looks ready to take a tumble to me.
The longer term trend oscillator is down, the shorter term one is rolling over, and we have a gap in place from a few weeks back. I will be looking to sell rallies here if we get them.
Good trading to everyone.