In that there's a deep read (our main weekly message) coming your way shortly, I'll keep this morning's note brief and to the point.
In our April 29 video, where I performed a quick technical analysis for you on each of our core positions, I mentioned the "heaviness" in the tech sector; I pointed to the extended negative divergences in our momentum indicators (yellow lines in panels 2 and 3 below) and a sell signal (red circle in panel 2) in the MACD.
While I noted that this combination (despite the sell signal in panel 2) wasn't in and of itself a sell signal, it pointed to heightened risk of a near-term downside move:
XLK (our tech ETF):
"The conventional understanding of the forces that determine the financial markets and the economy is inaccurate, and accordingly has no hope of shedding any light on the next financial and economic crisis and its consequences."