The 30-Second Test That Tells You What Kind of Market This Is

The Qs haven't made a new high since May.

Four months. The S&P and the average stock kept going and topped out in the middle of August, and since then all three have been rolling over together.

Everybody's still calling this a bull market, and technically it is, but the leader has been going sideways since Memorial Day and nobody wants to say it out loud.

Okay so, here's what I want to give you today.

There's a two-question test I run on any market, it takes thirty seconds, and it tells you whether you're in a bull market that's strong or one that's just being defended.

It's also the reason I can be bearish on this market and buying Amazon at the same time, and I'll show you exactly how both are true.

Listen, the bulls are going to be stubborn here. I've been saying the market looks weak, and the Fed didn't break it, and the bulls are still out there defending it, but the longer they do that without an actual breakout, the more strung out this thing gets.

It's got a crosshair on it.

So how do you know if a bull market is strong or just stubborn? I ask two questions.

One, are the pullbacks quick?

In a strong bull market, price dips and gets bought right back up, within days, because there's real money sitting underneath it waiting. Two, is the leader making new highs? Strong markets make them. It's what they do.

Now look at the Qs.

They topped in late May. They dropped into July and it took them two months to get back near that high, and they never took it out.

Then the S&P and the equal-weight made their highs in August, and since that top everybody's giving it back.

The pullbacks drag, and the leader hasn't made a high in four months. That's not a strong bull market.

That's a market that's getting too strung out, and a strung-out market is one piece of bad news away from a tailspin.

Which is why Amazon was driving me a little crazy.

I'm getting a buy signal on it, and Mark's been seeing big call buying in it for weeks, and I'm like, in a market I just called weak, that's confusing. Except it isn't.

The Qs have gone nowhere since May, and Amazon is one of the names inside the Qs that's getting bought anyway. When the index is stuck, the names that are still getting bought inside it are the ones you want to be in. The rest of it isn't a buy. Amazon might be.

But you do not chase it. This is the same rule I gave my members on Friday when we put the trade on.

Be patient, fill it between now and the end of the day, don't force anything, don't chase, because I still think this market's going lower, and the trade is not going to get away from you.

Your homework for this week.

Pull up SPY, the equal-weight S&P, symbol RSP, and the Qs on one chart going back to December. Find each one's last high and write down the date.

Then look at what's happened since the last of those highs.

If the leader stalled first and all three are rolling now, you know exactly what kind of market you're in, and nobody had to tell you.

I'm buying the names that are still getting bought, and I do it live every single day.

Come watch for 30 days, on me, and see what I'm buying and when I pull the trigger in a market like this.

Rock On,

Voz

P.S. If you want to see the Amazon chart I'm talking about, I recorded a video on it yesterday, the spot, the target, all of it. You can see it here.