THE RACE IS ON.
Signals in Motion, Updated Plan, and much more.
Good morning.
Last week I wrote:
We are working with the following scenario:
A standard 9-12% correction in the S&P to test multiple support targets (chart below).
QQQ would target a 16-22% decline (second chart below).
SOX would target a 30-40% decline (third chart below).
A week later:
❌ This is one of the fastest plunges from an ATH ever.
❌ Extreme moves in “bottleneck” stories are more evidence of the major instability we warned about.
❌ Sentiment was extremely complacent. So much so that when the market first cracked, few took it seriously, and social media posts were giggling at “prices not seen since last week”…
❌ As a result: the market gods have now taken back almost a month of S&P performance (nearly all of May).
Maybe worst of all:
❌ The AVERAGE High-Beta stock (typically trafficked on financial Twitter) has given back HALF the rally from March. Pick any — Drones, Robotics, Quantum, ARKK, all taken to the woodshed.
All this from a *5%* dip in S&P.
As we’ve been saying: know what you own.
Peak to trough:
S&P down -5%, NDX -8%, SOX -16% — in a week.
(*Note the major indexes are *exactly* halfway to our ideal targets.)
So the question is:
✅ How could this play out?
✅ What are the potential paths?
✅ What is the risk-reward equation right now?
Most importantly:
✅ What do you BUY on the other side?
The answers are appearing…
Let’s begin planting the seeds today.
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