US Equity Markets Headed Lower I'll let the charts do the talking on this one.. QQQ 60-minute April 7th SPY 60 minute April 7th MDY 60-minute April 7th IWM 60-minute April 7th 1+ Related posts: Gold, US Equity & Bond Markets US Equity Markets Bearish Rising Wedges Break Down US Equity Market Outlook 2-16-16 (video) Outlook For U.S. Equity Markets (video) Equity Markets Breakdown Following Failed Breakouts 2016-04-07T14:14:08+00:00 Apr 7, 2016 2:14pm|Categories: Equity Market Analysis|Tags: $MID, $NDX, $RUT, $SPX, IWM, MDY, QQQ, SPY|16 Comments Share this! (member restricted content requires registration) FacebookTwitterLinkedinRedditTumblrGoogle+PinterestVkEmail 16 Comments GetItRiight April 7, 2016 2:24 pm at 2:24 pm Could this be the start of what we have been anticipating for a month now or will the powers that be keep the markets up till OPEX next Friday? 0 lee1 April 7, 2016 2:24 pm at 2:24 pm Been some time but maybe it is finally happening. 0 Kstellish April 7, 2016 2:32 pm at 2:32 pm At what point would you scale in your short position size? 0 rsotc April 7, 2016 2:44 pm at 2:44 pm Kstellish- Do you mean add to the starter positions in TQQQ, TNA and other individual shorts that I already have? If so, I need to see some impulsive selling & technical damage first. Don’t have a hard number just yet but will be sure to communicate my thoughts if & when it appears there is some evidence that the next pullback in the broad markets might be more than just a run-of-the-mill, overbought pullback before the next thrust higher. However, if the Jan/Feb selloff wasn’t just a correction in an ongoing bull market that is soon headed to new highs but rather the first leg down in a new bear market, I’m pretty sure you’ll recognize the different between a correction in an ongoing bull & the start of the next wave down in a bear market. 1+ Kstellish April 7, 2016 3:10 pm at 3:10 pm @rsotc yes that was exactly my question. More or less when to initiate a starter or, in the case of myself, add additional short exposure to a previously started short position. Thanks for your response. 0 snp April 7, 2016 2:50 pm at 2:50 pm this rally has gone on so long that the stock I bought at the bottom is in a museum now 0 snp April 7, 2016 2:54 pm at 2:54 pm this rally has gone on sooooo long that when I went long my broker was jesus 0 snp April 7, 2016 3:02 pm at 3:02 pm this rally has gone on soooooooooooooo long, I had to buy a bigger monitor for my computer to see it 0 snp April 7, 2016 3:04 pm at 3:04 pm this rally has gone on…how long has it been…its gone on so long that there is a shortage of green ink 0 snp April 7, 2016 3:07 pm at 3:07 pm its gone so long that it started with the s&p300. 0 snp April 7, 2016 3:07 pm at 3:07 pm so long that it started with the qq. 0 yaya April 7, 2016 3:15 pm at 3:15 pm Is there a way to zoom out these charts so they’re bigger and clearer? 0 rsotc April 7, 2016 4:08 pm at 4:08 pm yaya- Yes, click on any chart & it will expand. When you see a string of multiple charts together, as in this post, it is best to click the first one as will expand it and since there are multiple charts together, it will open up in gallery format. That means that you can click anywhere on the right side of each expanded chart to view the next one (or click on the left to see the previous chart again). Once you get to the last chart, just click the X in the upper-right corner to close the image gallery. 0 vim2 April 7, 2016 4:25 pm at 4:25 pm @rsotc Randy could you please do a quick update on gold and gold stocks thank you ? 0 rsotc April 8, 2016 8:51 am at 8:51 am @vim2: Please take a look at this late update on GDX posted on Tuesday (April 5th): http://rightsideofthechart.com/gdx-approaching-key-support-resistance-levels/ Yesterday, GDX gapped above that symmetrical triangle pattern on that 60-minute chart (above the red downtrend line) and although currently indicated to gap down to around 20.57 today (as I type), it looks like GDX will remain above that level. As mentioned in that previous update, a gap above that small triangle pattern is likely to bring GDX up for another test of the top of this nearly 2-month sideways trading range The bottom line remains that until GDX and gold both make a definitely break above or below the trading ranges they have been in for many weeks now, swing trading is likely to prove very difficult as with most sideways consolidations. From what I can gather, the overwhelming majority of traders & investors are bullish on gold & the mining stocks and expect an upside resolution from the current trading ranges. I was consistently making the longer-term bullish case for gold & GDX before they bottomed but my bullishness is somewhat tempered at this time mainly because bullish sentiment in gold has exploded to extreme levels following the recent powerful advance and as such, that has & may likely to continue to provide headwinds for gold & GDX until that bullishness abates. While gold & the miners may very well pop & run above this range soon, one thing is for sure & that is the fact that gold & GDX has been a dead-money trade for weeks now & as I don’t see an explosion and update run comparable to the leg leading up to this consolidation range, at least not a this point,as a likely scenario, I’m focusing my efforts on better trading & investing opps at this time. 0 vim2 April 8, 2016 9:31 pm at 9:31 pm Randy many thanks 0 Comments are closed.