Here's a sentence I haven't typed in a long time: Yesterday was an ugly day for bulls. Amazingly, it's starting to look increasingly likely that the "Bull 5" peak, which we began anticipating well in advance (at SPX 2489-2500, and north of 22,000 for INDU) may indeed have been correct.
SPX got smacked down by my first resistance level like a mosquito at a WWE match. It does have a major inflection zone approaching on the radar, so that will be the next test for bears (if we get there, of course):
INDU has continued turning, and is now under first support, with the 21,500 target (mentioned last update) on the radar:
NDX threw a minor curveball and appears to have formed a running flat, which caused it to turn south slightly below its ideal target zone:
And BKX -- remember BKX? Several months before Dennis Gartman decided to "stake his reputation" on the end of the bull market, we were predicting that BKX was already in the midst of a meaningful correction. Of course, it still has a ways to go, so it's still technically possible I could have to eat crow on this call -- but it looks "as good as it gets" so far, anyway:
In conclusion, bears fired a serious warning shot yesterday, and as I mentioned a few updates back, if 5 is indeed complete, then this decline is just getting warmed up. That said, we can't entirely count bulls out yet, but things do look more promising for bears than they have in a long time. Trade safe.
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