Financials are getting weakerIt's been way too long since there was a serious correction. A bull market usually lasts for about 4 - 5 years. The current bull market is 6 years old! The last serious correction was in 2011. Everybody is excited by this new record high for the Dow. How can anyone be excited knowing the age of this uptrend??? All major global indices are on the spot of huge bearish divergences. The VIX is at a very low level. The New High - New Low indicator that Dr. Elder calls the best leading indicator is showing massive bearish divergences. The earnings season did not exceed any expectations, with most stocks posting dissapointing results( I don't check the raw numbers, but it's vissible on the charts). The FED is exiting the QE program. The seasonal bullishness is fading away, as summer is coming. Why go long ??? It's time to short. When will this correction or the bear market finally come?? It's impossible to tell, all I know is I do not want to go long just because the Dow is at a historical high.
There's not much to say about the chart presented here. I think the labels are telling all the story. Momentum is fading away, and deviations from the Wave are getting smaller, and the MACD lines are showing a double bearish divergence.
I want to take the short side using the daily chart. At this moment there is no setup, neither here, neither on the daily. The point is to look for shorts, not for longs.
