What the h?

The h-pattern is hell for bears in bull markets and hello new lows in bear markets. Some h-patterns are at their moment of decision right now. Others are at various stages, some bounced where a bull would want them too, some broke, some are still early in formation. The most important and imminent two are ARKK and FB. Both are near their 52-week lows.

Shorting With Reckless Abandon

Hello Trouble in Bonds

The h-pattern is back! Hell for bears in bull markets and hello lower prices in bear markets.

I've added the volume profile here to highlight there is some support just below current prices on ZB, but not much after. The market wasn't ready for a clean break of the lows today. I'm agnostic on bonds here. My view is financials are doomed either way because either rates go lower and financials sink, or rates go higher very fast, which is also very bad for financials because their assets depreciate faster than income payments come in. ZN is much more advanced and has much less support ahead of it. I posted mortgage rates earlier. The housing market is doomed in one sense, and will absolutely awesome for first time buyers if rates break out of their basing pattern. May they unleash a wave of destruction on speculators and investors gobbling up supply.

KBE held up similar to ZB today and didn't take the plunge.

The potential island reversal on BLK remained intact.

Blackrock Island

If I can get an island reversal on this, I'm going to short it to oblivion.

The Bear is Back: What Goes Up, Must Come Down

I don't care what sends the market down, but if you make my guess, my hunch is earnings warnings.

Rollovers

Reversal Spots

A bunch of charts made it back to resistance areas. I included FIVN to show a violation. They look good today, but tomorrow could be different...still I think the rally should be petering out here on the assumption this is indeed a bear market. Teh red horizontal on VRSN is the 2000 peak.