Below is a monthly chart of the Wilshire 5000 index. That’s the entire market. The message: It’s further disconnected from its monthly middle Bollinger band than ever with its RSI exhibiting behavior similar to the previous major market tops which resulted in quick reconnects within a 2 month period. In short: The market is due for a 15% pullback and potentially very quickly:
Why quickly? Mid-term elections seasons tend to sell into May/June and the $NDX, courtesy $AAPL and $FB gave us a nice gap up into this descending trend line resulting in this pattern:
Is the market ready? You be the judge of course, but the signs are there.
Categories: Daily Market Brief