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Here is an excerpt from our trading plan.
On Thursday eve, we wrote this about the trading plan for Friday 5/23:
"There is a high probability at this point that $SPX $NDX $RUT will have a snapback rally tomorrow Friday and rise back up. They are likely to run into resistance at the red lines and will turn downward to re-test the lows of today (yellow lines)."
We saw the mini snapback rally on Friday, and all three indices ran into resistance and dropped down before closing. Many bulls probably headed into the long weekend feeling exhausted and worried.
However, the market is unlikely to be heading into bear territory right now. We have been sharing with you what our system detected since last Monday 5/20/19. That is the bullish divergence shown by $VIX and $VXN chart actions versus $SPX $NDX $RUT price actions.