This Is the Easiest Chart of the Year. I mean that. Look at what SPY is doing right now. It is moving inside a clean descending channel. A descending channel is when a stock or index makes a series of lower highs and lower lows, bouncing between two parallel downward sloping lines. Upper perimeter around $690. Lower perimeter around $645 to $650. Every time price touches the top of that channel, you short it. Every time it touches the bottom, you buy it. That is the trade. That is all it is. I know the headlines are screaming. War, oil, Fed uncertainty, every pundit on television telling you something different. Ignore it. The chart is not screaming. The chart is actually one of the cleanest setups I have seen this year. Price is moving in a defined range and it is telling you exactly what to do at every turn.

I am going to show you something. Last year, before most people saw it coming, the market followed a very specific sequence. It consolidated in a tight range for weeks. Then it started channeling lower. Then it broke through the 200-day moving average. Then came the capitulation. Three ugly candles. Boom, boom, boom. Then the rally took it right back up. I called every step of that sequence in real time. Now look at what is happening right now. The consolidation just ended. We channeled lower through December and February. We just broke through the 200-day moving average. Sound familiar? The 200-day moving average is the long-term trend line that most serious money uses as a floor. When the price cleanly breaks below it, it is not a buy signal. It is a warning. It means the trend has changed, and the crowd is about to get shaken out. Here

The Market Was Already Breaking Down. Iran Just Gave It an Excuse. Nobody was listening when I said it. Weeks ago, before the first missile, before oil spiked, before the headlines started screaming, I was on camera saying the same thing over and over. We're going down. We're going down. We're going down. I was not reading a news feed. I was watching the structure of the market break. Here is what I saw. The same pattern I had traded before was showing up again. Late December into January, the market was running out of steam. The bull flags were breaking. A bull flag is a tight consolidation after a strong move up, the kind of pattern that should hold if buyers are still in control. When those flags break, the buyers are losing the fight. Symmetry was cracking. When that happens, the longer it takes to recover, the more