Engulf Crisis

I will not be shocked if the S&P 500 Index ends up with a bearish engulfing candle into the close. Unlikely, but not impossible because last major support is around 3580 on the ES. As for stuff that is already or almost engulfed, here are a few. Note that if there is a trendline visible (uptrends, not horizontals), it is at last a few years old. Some are lifetime. I included QQQ to show how far away it is on the indexes. It would take a major drop in the last hour to get there. If the market drops another 50 points or so, them majors will still be well off Thursday's lows, but there will tons of these candles out there on individual securities.

Another one almost almost guaranteed if the market dips a little bit: Tesla.

Put Buying Spree

I have massive OTM puts on all of these. Plan on adding to XLE and XLI. I didn't buy puts on FXI, but included it because it is important for emerging markets. It looks like the same setup as in October 2008. I still have cash left and am looking to add more on one final pop in the market.

Horizontals Getting Tagged

Open Door

The orange line marks the 52-week low in ZB. It doesn't have to break for a bear move, but a break would be more bearish for the market than a rally because a rally would signal the long-end of the bond market finally pricing in lower interest rates. It's possible stocks and bonds drop and rise together, but my expectations is bonds will lead a move higher. If bonds rally now, then stocks probably bottom in a month or so. If bonds drop now, then the final low in stocks is probably lower and closer to or into November. That is a general sense, not a hard forecast.

Technicals say bounce from oversold indicators and bearish sentiment. ES shouldn't clear 4020 and SPY $400. A move above could result in a ripping short squeeze.

If the markest break, there are bearish targets galore. These are only the few I've posted recently or noticed as I'm going through charts this AM...

Bearish Engulfing in Play Now

SKYY is a cloud coputing ETF. It also sports a bearish engulfing candle at the moment. Doesn't count until the close...

Now Is the Time For Courage

Not much downside with that line as a stop, assuming no explosive pop through it.

Very Dead Cats

Some of the tech funds have almost no bounce, Meta among them. Here are four others, familiar names here. They should implode once the bear market resumes.

Massive Tops Loom

Yes, the market can bounce. It can also still slide into the abyss.

Short it NOW

Well maybe nmot right now, I don't know if it could bounce or not, but the target is 55 percent lower. The gap is within $10 of the measured move off the massive top.

More Charts To Ponder

I neglected to include XBI in the h-pattern post. That one is a also a major and imminent pattern whose resolution will have important implications for the broader market.

Added Puts on These Two Too

Nothing but air below the 52-week lows.

Saturday Two Dozen Part II