The February 2020 market drop may well have heralded the birth of a new era in market history most likely comparable to the impact of the 1929 market correction and quite probably- it's 'alternation' complement. See Critical Long-Term Review Here
A very critical chart indicator (among several others) can be observed using the following. We have combined several overlapping charts so please bear with us while we try to disseminate it as simply as possible because that's what we have to shoot for. The market inter-relations are necessarily complex especially at critical junctures and where the scale is now this large. We have wrapped everything around the $NYAD (moving averages of breadth) chart for presentation convenience and because that is our most common 'go-to' chart as readers may already have often seen.
Please see the prints for VXX - upper chart yellow color, SVXY- second segment and UPRO- lower segment instruments. The main take-away for this moment is that UPRO and SVXY printed similar parallel moves until the recent market decline when SVXY failed to show a recovery which often indicates that it has not yet 'bottomed'. Note the relative size difference between the decline-minus-retrace distances 'A' and 'B' which clearly demonstrates a divergence. The 'recovery' that all the other main market instruments have displayed (more or less) may only be a first stage in the corrective cycle. More market downside is likely required from here (or thereabouts) in order to effect a retrace move up in SVXY at this degree. Expectation is that it needs to take out it's 2018 lows prior to a bounce. It may not require a mega-decline at the moment but there is the possibility that as we move forward in time, a mega-decline will be required to finish the long-term review referenced above in paragraph one.
Since a market top was flagged recently on 9/2/20, we are watching for a follow-through, accelerating downside move in the market. A fast crossover down in the $NYAD-'bear cross': 50ma(value=+119) below the 200ma(value=+92) is the next signal we are waiting for. That has not yet occurred and leaves the door open for a time delay or a retrace up/new high to print first so essentially watching indicators and price action for now. The time window could be about to close for this bear cross in breadth ma's to occur (or bounce back up?) so better to stay alert and not push the bullish mood as short term risk looks high. (VXX may well have 'bottomed').
This Information Is For Entertainment Purposes Only. Financial Loss Can Occur From Investing.
Our favorite go to site- McVerry Report
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