Levels we have been giving for days (in some cases weeks) have now been broken to the downside in all four US primary trading indices, and all are now on an intermediate term sell signal.
Immediate upper KRAs (potential resistance) now lie at the 1-2 day highs of the respective index. When markets are in Vertical Development, potential targets are never as certain because by definition a market in Vertical Development is searching for Value having rejected higher (in the present example) prices.
Just as everyone wanted to pick the top of the recent market, the same crowd will be out now calling for the next bottom. Trade, don’t predict.
If a signal is given that invalidates our bearish assumption we will certainly change our opinion about the intermediate term path of least resistance for the market. As traders we realize that just because the intermediate term may be down does not imply there will not be long trade opportunities, especially intraday, and maybe for swing trade here and there. However, when the intermediate term trend has been correctly identified the surprises tend to occur with the trend in all time frames.