Beginning of another Meltdown?

Sorry for the dramatic title, but Im trying to practice eye catching marketing ploys like CNBC and Yahoo Finance.   Anyways as you noted yesterday we made the rotation to short when we sold our long SPY at $110.  I got a bunch of emails today (don’t ask me why everyone refuses to leave comments) wondering why the change?  Well, as pointed out in the last weekly we were in a confirmed downtrend and this week looking for a bounce to sell into and we got it Tuesday and then yesterday when the market tried to take it higher it got rejected and thats when the rotation was made.  Below is a long term chart that explains why there is potential of more risk to the downside than missing upside at this juncture.

Is this the start of a big meltdown?  Who knows.  As of right now the trend is down and we are going to take advantage of it.  Will let you know if it changes.

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