Post Market Close Recap: Confidence in Another Sell Has Increased Dramatically

My rising belief that we will revisit the lows again has increased dramatically over the last couple of days. Let’s look at two things quickly, the S&P 500 and a brief look at $AAPL. One of things we missed a lot of on the decent in January is proper, good old fashioned bearish structure. And in fact, to the contrary, we actually saw a lot of bullish structure on the way down. It’s fine to guess that bullish wedges will break down, but it’s hard to insist that they probably will, but now: now we’ve got some nice bearish structure.

This is a nice, big, beautiful bear flag, behaving much like I would expect one to. It could be done now, as of the close, as I’ve spotted an excellent fib. Blue “C” wherever it ends, should be two things: 1) it should be a 5-wave move, and 2) it should have a fib relationship with blue “A.” We’ve got both now. So, there’s a good chance we descend next.

SPY

Likewise, we have a beautiful bear wedge on $AAPL. And it’s already broken down nicely. It looks like it’s already attempted to retest the wedge, and that may be good enough.

AAPL

In sum, we have an excellent setup for a drop from here, taking us to the 4000 area on the S&P. If not right away, then perhaps in only one more day or so, I would expect; but I have fairly high confidence that it’s coming quickly.


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