Heading Down but Still Churning

Today we see more of a downturn off the May 10 highs but the broader asset market situation is still within the top formation. The important thing is that the top is in, but the collapse has not started yet. I am trying patience.

Big Picture Chart:

Here is the chart of the total picture updated through 11:30 AM with Dow down 850. What you see on the chart is that the market is at the average seen since February 24, 2021 (dashed red line). This composite index that we use to get the big picture view includes the three major stock indexes, three bond indexes (30 yr, 10 yr, High Risk), real estate, commodities, and Bitcoin:  DJI,SPX,NDX,TLT,IEF,HYG,GLD,VNQ,CRB,BTC , each set to 1.00 on February 24, 2021.

And a Follow-up Comment

on the Peak Fantasy chart SBUX and AAPL. It had an outside day on Friday, which was a good warning for what is happening today.

And the Dollar..

We have been pointing out that the extreme bearishness on the dollar by the market players is probably going to catch a lot of people on the wrong side. Today we are seeing the possibility of an upside breakout out of the bottom that started building in late December.