In case you missed it, the day started off bad and only got worst for the bulls.
This was the worst case scenario as the gap down on the indices this morning not only trapped all of the longs who bought Friday’s rally but also handily turned the quarterly charts red on all the indices.
This means all the indices are now trading below their 3-month opens and we have full-time frame alignment on all the major timeframes to the downside.
So long as price remains in this condition the bias needs to be short and any rips should be shorted with impunity.
I’ve been warning about the DIA for the past couple of week in the Weekly Outlook videos, and DIA is now less than .20 away from completing the inside bar reversal pattern on the monthly chart.