1. Bulls in control of price still, but the combined picture of this chart suggests an imminent handover to the bears:
2. Plus, new high on negative Nymo breadth:
3. Equity only put call ratio printed an extreme low yesterday:
4. Investors Intelligence bullish sentiment last seen Oct 2007:
Source: Charlie Bilello
5. Sornette bubble-end flagging a second time on SP500:
6. Euro short interest at level that suggests a rally ahead in the European currency:
So, ECB decision today and US employment report tomorrow. The Euro chart above potentially paves the way for ECB aggression disappointment (thus Euro rallying), which would fit with their conservative approach to date. Meanwhile yesterday’s ADP report paves the way for a potentially disappointing US jobs report tomorrow. However, if news exceeds on either release then more short covering could propel equities higher.
Pressure is downward from here into next Friday’s full moon. The combined picture, including the charts above, has set up another compelling chance here for the bears, so let’s see how the market reacts to the two news releases.