3X TQQQ BUY SELL

[TREND1]

One characteristic of a bear market is that weekly PPOs do not move through centerline resistance. While countertrend rallies are normal, bullish momentum doesn't last long enough for weekly PPOs to turn positive. It never happened during the 2000-2002 bear market and it never happened during the 2007-2009 bear market. Currently, the weekly PPO is nearing its centerline resistance, as reflected below on the S&P 500 chart:

https://d.stockcharts.com/img/articles/2019/02/1550669681777753498628.png

This is it. If the bears hope to regain control of market action, now is the time. The above chart is the most bearish case I can make for the S&P 500 right now. In each of the past two bear markets, the weekly PPO never turned positive and the weekly RSI never moved above 60.

The red circle above shows congestion in 2016 as this same type of market configuration developed. I expect we could see the same kind of consolidation with false upside breakouts and false downside breakdowns. The stock market is never easy, so consolidation at the current level would likely confuse the most market participants. Based on that alone, this is our probable short-term path.

http://schrts.co/FJBJTIUA