SPX - CURRENT SITUATION

Hey Guys,

Alright, so here's the deal.

In its history, the S&P and other indexes have experienced a high amount of auto-correlation - or 'trendiness' - which used to make trading very easy. The thinking used to go like this: "If the day before was positive, it was a decent bet that today would be positive as well."

This all changed in the later 2000's with the rise of High Frequency Trading. H.F.T. destroyed the indexes' auto-correlation, which made trading much harder.

This unprecedented auto-correlation, marked on the chart, makes me think that this rally is mostly human-fueled. To quote Warren Buffett, the greatest investor of all time, "Sell when everyone is greedy."

Together, I will list the confluences here that make me believe that SPX is a sell:

1. Technically overbought

• RSI
  
• Bollinger Bands
  

2. Flattening Trend (Blue Curve)
3. Changing Net Sentiment

• Put/Call Ratio
  
• Popular Analyst Chatter
  

4. Tweezers Price Action Pattern
5. Overall Greediness

Given these factors, I believe that now is OFFICIALLY the time to sell.

I have marked a zone of support for SPX where it might consolidate towards. I will be entering the markets when they open in a short position.

Trade Well.
AW