Today the market got another one of those little jitters. There’s a bearish engulfing candle and everything! The linked post explains more about its implications, which are only very short-term. But this update is just a simple guide as to what would be needed in order to signal more bearish potential.
A daily close below last week’s low looks like a reasonable spot to begin ramping a functional bearish view (joining the already contrarian bearish sentiment view). SPX can drop all the way to and even through the SMA 50 and still be considered in a healthy correction. But it’s so overbought that would be trade-able for those so inclined. Short of a close below 2547.92, I’d be careful with bear trades.
Just a simple FYI for anyone interested.