I’d imagine that I sound like ‘the boy who cried wolf’ to some as I’ve posted quite a few charts on the building divergences & continued deterioration in market internals for a while now. I do my best to impress the point that these are not sell signals, merely an indication that all is not well under the hood & that the longer these divergences build, that is assuming they aren’t negated before a meaningful correction (15%+), the more powerful the ensuing trend reversal will be. I believe these charts help to prepare one’s expectation of just how powerful the next downtrend/bear market will be when it finally comes.

For now, all trend indicators other than the shortest of short-term trends (on the intraday charts) remain bullish although that doesn’t imply an all-clear buy signal on the long-side due to the current posture of the charts & other factors. The way the charts are configured at this time, we could literally be just days or even hours away from some significant breakdowns on some key sectors & stocks which are quite likely to trigger such a swift selloff that most bulls won’t know what hit them & most bears or flexible (long & short) traders will be too slow to act in positioning at an optimal level. More on that soon.