After a strong multi-month grind higher, SPY is showing classic signs of exhaustion. A rounded top could be forming — here's what to watch and why I'm turning more defensive right now.
The Macro View: Searching for a Bottom The non-stop beating for tech stocks continued through last week as the broader market slumped. We are seeing significant volatility, evidenced by a peaking $VIX. This typically signals one of two things: we are close to a final "capitulation flush," or
While the broader market was still pumping on momentum, our systematic models flagged a high-quality short entry for $QQQ at 610.70. Within 72 hours, the tape confirmed our data, hitting the target at 600.65.
The VIX has hit a key reversal level at 18.50, triggering a risk-off signal for most stocks. Note that not all stocks participated in this rally continuing to make this is stock picker's market.
The market character has shifted from "reallocation" to "liquidation." Here is what the data says about the bottom.