Here is another big clue, pay attention here! So far, the QQQ and SPY has done pretty much exactly as per my forecast, it is pulling back from my call 2 weeks ago. What's more important, is that SPY and NASDAQ is behaving as I had predicted: I said these US stock indexes are so extended in their rallies, that ANY disappointment in earnings season will make them pull back. And EVEN GOOD NEWS will not be enough, we have seen TSLA AAPL and others report earnings and revenue higher than expected, and yet stock prices still tank. Because the expectations are so high, the stocks have priced in all the good news! So look at this chart below, it shows when SP500 reports POSITIVE earnings surprises, meaning when earnings Beat expectations on SP500 stocks, and what the stock prices did 2 days after reporting earnings beat. And we see that now prices are down 0.5% even when they beat earnings report! So that means prices have priced in so much good news that even when higher earnings come, the market is still disappointed by the good news. Ok, lets' look at the last few times when this happened: Q1 of 22, Q4 of 2019 and also Q3 of 2018 (not negative but very little reaction). And when you compare against the price of SP500/SPY, we see all 3 instances led to MAJOR declines in the SP500! And in fact, if we look at the OPPOSITE: when SP500 earnings beat expectations, and prices jumped up, that was in Q3 of 22, Q1 of 2019 and Q4 of 2018, they were followed by Big Rallies in SP500. So this reaction by the market is a Big Signal on what will happen to prices in the following 3- 6 months. When the market is bearish, and they get surprised with Earnings Beats, they jump up, and major rallies follow. But when they are very bullish (like right now) and earnings beat comes in, stocks actually go down.... that means it's over-extended and a big Pull Back is due.

Look at the following two charts and see it for yourself.