The market is heading down

Three weeks ago, I warned you about the scary chart on high yield bonds (HYG). As I said, this was a setup for heading down. Below is the updated chart for HYG. It is now showing a bearish head-shoulder pattern, furthering pointing towards the downside. Along with the weakness of HYG, the overall market is also struggling, although it is still trying to stand up. But I think a big leg down is on its way. S&P will at least test its next support around 1950-1970. If the bulls cannot defend at that level, then watch for the lows below 1900 in the weeks ahead.