Monday is a critical day. Its bounce or die time.
Let me emphasize that again: Bounce or die.
Friday left the major equity indices looking vulnerable with a Large Black candle and Bearish Engulfing candle patterns. The indices look vulnerable on all time frames, from weekly and daily to the five day, five minute charts. Basically its bounce, then die… or simply die. The Bull is long dead and the secular Bear is here. The only question that remains is how far and how fast does the Bear maul this market?
New Homes Sales out on Monady at 10:00 AM just might be the catalyst either way...
Never forget, the best case scenario is still bounce THEN die.