PCE is due up on Friday. It’s one of the Fed’s most important gauges of inflation and probably won’t be quiet.

In this video, Bruce discusses the continued weakness in the overall market. We have had lots of warning signs since the start of the year and have fallen over 10% since then. Bruce is still pulling for the Bulls, but today we broke below the 200 SMA (Simple Moving Average) as yet another Bearish sign. While this type of deeply oversold market can rally very quickly and violently, we need to use extreme caution in this market and only take trades with an edge until the smoke clears. Therefore, we wait and watch and sit on our hands more than normal for not good, but great trades, and be ready to pounce.

The question on the minds of traders and investors! Trading is about probability, and while no one can know the future, we can follow the data. Here’s what the data is showing and where the opportunity is.

There are few charts that offer decent structure in the current market, but if you do want something to buy, this is the pattern you’re looking for.