Cryptos No Bueno, Low Incoming for Stocks?

The low that formed the red horizontal on ethereum is from January 2021, where as the gray line is from May. Bitcoin has the same horizontal hitting in both time periods. Ethereum's dip is important here because of the velocity , down 8 percent as I'm typing, but the horizontal on BTC is more important for signaling a breakdown.

Weakness in crypto makes me think my attempted long trade on Friday was ill advised. Obviously it didn't pan out, but cryptos aren't showing any sign that a bounce is coming. Meanwhile, Friday was the type of big volume day that signals the market is moving out of a trading range.

Traders I trust are on two sides and I suspect both are right. When the market capitulates, none of the "small" indicators matter. It's a big market move, there aren't professional traders involved, but retail and institutional investors pressing the sell button in a panic. Extreme technical readings become more extreme technical readings. The traders using long-term signals such as years and decades-long trendlines are better able to navigate. When the big trendlines and the extreme technical readings align, then a major rally will unfold. I will take the markets a day at a time, but if new lows are taken out, then the 3400-3500 area opens up and could come quick, and I expect various indicators will be screaming oversold for days until major support is hit. Considering the move of the past two days, a 20-point drop in SPY, my "pit stop" target of $370 could be hit on Monday or Tuesday, with $340 area coming by Friday if everything blew up this week.

I like energy shorts here because my view is bearish energy is stock market agnostic. If stocks enjoy a sustained rally, crude will have to fall. If the market implodes, then it'll be obvious to everyone that a major financial event and possibly nasty recession is here, in which case oil will fall because traders anticipate falling demand or because traders anticipate the Fed will hike until crude collapses.