The Yamada double top thesis is compelling.
The Larry Kudlow indicator has something to do with how shrill he becomes about all the reasons why the market "should" go up. The louder he gets, the lower the market will go. Dry drunk.
My hunch based on nothing: If the XLF goes below 20.50 today for any period of time, say, after noon, then it will drop like a rock into the close.
Will SPY hit 134 or 120 first? If it hits 12O, then it might go to the 2003 lows, or at least 100 in a rapid way. Only by SPY going to 134 will it have a chance to turn the 200-day MA around.
Brian Shannon also pointed out that as long as SPY is below 200-day MA, it's a dangerous market.
In some ways, I would rather see SPY hit 120 because it would be a much easier trade longer term... declining 200-day, SPY below 200-day... easy call to 105 or maybe lower. If SPY hits 120, then I could buy SDS and go golf.
Market hitting 134 would be a harder one to trade or invest.
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