Markets started a free fall on Friday and are looking to extend the drop. After laboring to create a bear market rally news from the Fed late last week thwarted the somewhat fragile upward momentum and looks to beat up the indexes quite a bit.

Take a look at the S&P:

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The most recent long red candle is a clear sign but if you look at the MACD at the bottom of the chart you can see that it was well into over bought territory and has plenty of room to fall. Add to all of this a healthy spike in the VIX and it really looks like the rug just got pulled out.

Here is an article we shared about some great bear market trading tools. To get a better picture of how to determine if this is a blip or a shift in momentum check out Joe Duffy’s Little Black Book of Momentum Setups for free here.

Keep learning and trade wisely,

John Boyer


Market Wealth Daily