30Jan10:55 amEST

Cold Weakness When There Should Have Been Warmth

B8jKd_rIMAEJc-S.jpg-large Not much has changed with our ongoing analysis of the SPY chart, seen below on a zoomed-out 30-mimute timeframe. Despite the exuberance, cheered bounced we have seen along the way (purple lines) in recent weeks, each rally has simply set up the next leg down. This morning, we are seeing signs of a rollover, once again, denoted by the yellow arrows. I am sitting in full cash here, looking at a small cap short, potentially, as well as volatility and precious metals miner longs. Much of what I do next is going to be predicated on whether the most recent bear flag, again highlighted by the purple lines, proves true with follow-through lower. I should also add that seeing this market weakness in the face of big gaps higher in names like AMZN BIIB after earnings, as well as with the SHAK IPO zooming higher, is another sign of caution. SPY

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