|Watchlist: Downside Breakaway Gap |
Friday's futures close at 2668 indicates a breakaway gap lower on Tuesday with an open at around SPX 2665. Of course, that will surely change by Tuesday morning. Maybe it will be a big gap; maybe none at all; maybe SPX will open higher.
But see the charts. The set-up is perfect for something ugly to start off 2018. The Rising Wedge has been broken and retested; the PMO has turned lower; the daily MACD is on a sell; the weekly RSI looks ready to hurry below the 30 line; The Sheeple are loaded long; advisors are vocally and confidently bullish; cash is very low; VIX is way into complacency; valuations are stratospheric.
It's time for a gapping daily, weekly, and yearly gap - as part of a big down day of 2% or more - which will open a huge hole in all equity charts..