Liquidation Day

In this report, I discuss my view on capitulation and sentiment, as well as where I believe the market could be headed next.

The massive market unwind continued today with US stocks taking another huge leg lower (SPX -6%, QQQ -6.2%, IWM -4.5%). The S&P 500 just suffered its worst 2-day losses since the March 2020 Covid Crash.

This week’s selloff was a textbook example of the “h sell” pattern playing out. I sketched it out for everyone on Wednesday, setting a $5200 measured price target for the SPX on the breakdown.

The “h sell” pattern is basically the only setup you need for shorting in Bear Markets.