Well, the $SPX closed red last quarter! In and of itself, it does not mean much as we have seen reversals of these plenty of times, however, any down market has historically started with a red quarter, so we are in a cautionary period.

This gets us looking at the potential for that ABC pullback, with wave C taking the $SPX back to the upward trendline (UTL) from the great recession through the pandemic.

Now, if we zoom in a bit, you can see that the $SPX is on the edge of the rising channel, and a breakdown there could signal the beginning of that larger wave C move!

Now you can see why we are extra cautious here. Check out this video to learn more:

Dr. John