The Bigger They are, The Harder They Fall
Spy is overbought on the weekly BB's, RSI, with volume bearish divergence as well. The reverse Repo market is topping 1 Trillion on a regular basis, inflation is out of control, and margin debt is falling while s&p continues to rip. The United States is on the brink of defaulting on its debt. The Biden administration is a comedic puppet show that has proven itself incompetent even when handling the most fundamental of executive duties. Global Cov19 cases are spiking. The list simply goes on and on as to why this market as a whole is completely propped up on Ice cream and fairy dust. There is simply no justification for the markets to be testing all-time highs on a weekly basis after a 2-year parabolic run. I am expecting a retracement to at least the $420 range to be completed by the beginning to middle of October. This past weekly signaled a breakout to the downside from the rising wedge on the weekly timeframe. This, in conjunction with the other indicators I mentioned earlier, leads me to believe we are on the cusp of a market correction. stay safe and trade responsibly. Good luck - STS
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