build shopping list. big picture - 2135 on SPX was the high before Nov elections. Dow was around 18000. These are the levels we should *test* and hold for bullish case to be intact. Given current bull market in its 9th year, maybe 2400 is it.
Tops take time to form and we did spend considerable time up here. Another red flag - market usually moves in ranges. Implying if resistance is overtaken, market will establish new range equal in value to the old one. Looking at the charts, old range was 1810-2135 (320 points). New has to be 2135 + 320 = 2455.
Good approximation is 1800-2100 turned into 2100-2400.
Momentum turned negative, internals are weak and participation has been narrow - a handful of stock leading, with a lot of hot money in MoMo stocks like TSLA, MU, AAPL, FB, NFLX, AMZN, etc.
This is my view today. If conditions change, I will take new stance...
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!