The market is beyond overstretched at this point on a short-term, intermediate term, and long-term basis. The sheer number of warning signals is staggering.
The blow off top out of the rising wedge pattern we noted before is rolling over indicating this is likely a false breakout:
The Russell 2000 is lagging well behind the S&P 500. Small caps, in general, should lead a rally if it’s going to prove legit:
China, which has lead the S&P 500 in general since the 2009 bottom peaked months ago:
Copper, which serves as an excellent proxy for the global economy, is collapsing, showing that this rally in stocks is occurring while the global economy gets weaker and weaker.
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Best Regards,
Graham Summers