Hi YXI friends,

If I asked you a year ago that S&P 500 sits just 3% below its ATH, which broke 6900, you would have said “people must be feeling greedy”.

And you would be wrong. (Although you would have been right in October, when everyone was sharing their million-dollar P&Ls and triple-digit gains).

The market is now decidedly in a bearish mood, with extreme fear.

Hard to believe, right?

It suggests that the participants got carried away with risk-taking, both in their positioning into high-beta names and in their use of leverage.

If you followed my analysis in the past 2 weeks, none of the recent market action should have come as a surprise. We have patiently mapped out the corrective path of this pullback.

Until the market breaks expectations, we continue following our game plan with the pullback target zones and wave 5 expectations thereafter.

DISCLAIMER: This newsletter is intended for educational purposes only. Any information or analysis in this note does not constitute an offer to sell or a solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice, nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

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