SPDR S&P 500 (SPY)

[ArchiH]

Interesting you say that, Tom, and I agree, tomorrow's action is key, but technical WARNING signs are there and I believe the Summer could get ugly...fast!

Firstly QQQ's are leading the market again in May despite insane valuations and P/E ratios..."tech bubbles" have typically peaked and preceded a big sell-off. In addition the H&S pattern.



Secondly, SPY clearly doesn't like any indecision candles and they have routinely signaled a deep DROP coming. That said, the 270 support has been impressive this week which will keep Bulls from backing-away. However, oil looks to be pulling back, and the banks are looking in bad shape especially if Italy becomes a mini financial crisis with some systemic risk. Energy and Banks are a large component of SPY, the remainder is big Tech. If big Tech falters like I believe it will, SPY will be facing a massive CORRECTION...JMHO.



- XLF looking sick!