I believe the stars are aligning for a decent med term short for stonks.
Fundamentals are poor - inflation and rates higher for longer (not factored into earnings yet).
Sentiment is extreme - note recent sentiment surveys all extremely bullish (greed) contrary to market perception.
Bears have been capitulating - note short covering rallies (stopped out) in heavily shorted names.
Technically SPY looks like an irregular B or X wave consolidation before heading lower. (RTY looks like a classic triangle consolidation B/X wave).
Short 4300, stop 4450, looking for 3800 or lower (4 to 1 R/R) coming weeks/months.
NOT INVESTMENT ADVICE
Fundamentals are poor - inflation and rates higher for longer (not factored into earnings yet).
Sentiment is extreme - note recent sentiment surveys all extremely bullish (greed) contrary to market perception.
Bears have been capitulating - note short covering rallies (stopped out) in heavily shorted names.
Technically SPY looks like an irregular B or X wave consolidation before heading lower. (RTY looks like a classic triangle consolidation B/X wave).
Short 4300, stop 4450, looking for 3800 or lower (4 to 1 R/R) coming weeks/months.
NOT INVESTMENT ADVICE