A death cross!
A death cross is, according to Investopedia:
The death cross is a technical chart pattern indicating the potential for a major selloff. The death cross appears on a chart when a stock’s short-term moving average crosses below its long-term moving average.
And it looks like THIS! That blue line is the 50-hour (1 week) moving average moving below the 200-hour (1 month) moving average and now we're going to test that range from below and, if 3,333 (the 50-hour) acts as strong resistance, it's a very bearish signal moving forward. The 200-hour moving average (3,350) will certainly be rejected at first (great shorting opportunity on /ES with tight stops over that line) and then we'll see if we get a strong or weak retracement from there but – if we don't even make it back to 3,350 – well that's also the 50-day moving average on the S&P 500 and failing that means, as we discussed last week, that we're very likely heading back to 3,100 – a 2.5% drop from here and the 200-day moving average.
The Futures have us up to 3,330 this morning and I will want to short that 3,333 line but with very tight stops but I don't see any really good reason for the Futures to be up 350 points on the Dow (1.3%) and 35 on the S&P (1%) other than it's another BS, manipulated, low-volume rally to start the week off so the Big Boys can sell to all the suckers as they liquidate ahead of the reckoning.
The US reported 36,919 new cases of corona virus yesterday but "only" 1,000 people a day are dying so why not open everything back up? Florida's idiot Governor DeSantis took his lips off Donald Trump's ass long enough to issue an order lifting ALL restrictions on businesses so come on down to Florida and get a lap dance folks!
"Every business has the right to operate," DeSantis said. "Some of the locals can do reasonable regulations. But you can't