Avalanche Warning

Princess Gwen here, atop fabulous Mount Nasdaq. Like any Princess I like skiing on pristine mountain tops covered in perfect snow, but even a princess knows to avoid avalanche zones.

This enormous wedge is giving every indication that it's about to break down in a huge tear. The MACD is still diverging downwards, and each new high just makes a lower peak on the MACD. The index hasn't been able to break 8200, despite everyone in the world wishing, and the central bank clapping to keep it alive. Just looking at the technicals, this looks like it's about to blow. At some point, you have to ignore what talking heads say, and look at the charts, and the charts are yelling that this bull market has closed.

The thing about avalanches is that you can't tell exactly when they'll happen, only when the snow has fallen, and is unstable. Once they start, they're tremendously dangerous. People who think they can outrun an avalanche are almost always wrong. Stay safe.