Below is the weekly chart of S&P500 – as you can see we are right where the magnificent fallout has started back in September 2008…yes – that is when even the most sold out on "we are fine" utopia (like Kudlow and CO or Maria Bart..whatever her name is…still remember Maria full of …grace cheering from Davos in Sep 2008: "CEOs say we are fine!!!" – f.. it – what else CEOs are supposed to say to bagholders???)
I think if not immediate downside, then at least continuous consolidation at this level – 2 years is nothing for market memory…a lot of people still incredibly happy to "break even" and forget that market has ever existed)
We are on the week 8 on weekly of sell setup.
And looking at daily chart – 13 sequential AND combo countdawns produced brief selloff/consolidation. To be fair – RSI on wave 5 does not look bearish…but I don't put too much faith in RSI. If I still have ability to be excited about anything – that would be linearity of ascent (green arrow) – how, how in the hell is it possible to stick to the straight line for so long???
