S&P 500

Looks like this rally has ended.

The S&P 500 has run into the downward sloping trnedline set by the 2015 top. It has since rolled over. We’re likely heading down in a big way.

Investors forget, the sharpest, most aggressive rallies occur during bear markets.  This is because bear market rallies are driven by short-covering: those investors who went short are forced to “cover” or buy back shares they have sold previously.

Consider the Tech Bubble.

Via Dana Lyons' Tumblr,

Despite positive action in the major averages, market breadth has very recently begun to lag.

"Still No Confidence In The Rally" - that's the title of the latest weekly BofA report looking at the buying and selling by its smart money clients (institutional clients, private clients and hedge funds), which finds that not only were sales by this group of clients last week the largest since September, and the fifth-largest in our data history, but this was the 10th consecutive week of selling as absolutely nobody believed this fakest of fake "rebounds" in recent history. 

From BofA:

The market's slumberous levitation of the past month, in which yesterday's -0.3% drop was the second largest in 4 weeks and in which the market had gone for 15 consecutive days without a 1% S&P 500 move (in March 2015 the sasme streak ended at day 16) may be about to end, after an overnight session, the polar opposite of yesterday's smooth sailing, which has seen a sudden return of global risk off mood.

Submitted by David Stockman via Contra Corner blog,

Simple Janet has attained a new milestone as a public menace with her speech to the Economic Club of New York. It amounted to yelling “stay” in a burning theater!