Weekly Buy Signal Completed Friday

Doesn't Mean Final Top, Means Window Is Now Open for a Pullback

For weeks, this SubStack has highlighted the Weekly Buy Signal completing on Friday, May 16th, with the current rally high expected between Wednesday the 14th and Friday the 16th.

Right on cue, Moody’s announced a U.S. credit downgrade after market close on Friday, the 16th, aligning perfectly with The System’s predictions

Does Friday’s after-hours Sell signal mean the market will crash on Monday?

Typically, no.

The market often rallies to a slightly lower or higher high first, before the true Sell-off begins. The System labels this the “divergent high.”

While not certain, this pattern occurs roughly 90% of the time, giving the Daily Buy Signal time to turn downward before the real Sell starts.

Let’s watch how Monday and Tuesday unfold. As previously predicted, I expect the Daily Signal to turn down early next week.

Here’s a concise recap of last week’s Stack:

• The Weekly Buy Signal finalized on May 16th, signaling a potential pullback.

• I shared a chart indicating that rallies typically peak around Opex.

• On Thursday, I noted an “Exhaustion Signal” for NASDAQ—the first of this rally.

The Moody’s downgrade didn’t trigger the Sell; it was coincidental. The charts predicted the rally’s end on Friday.

As I often say in Discord: charts lead, news follows—not vice versa.

The Sell on Friday does not mean the market immediately goes down on Monday.

Let’s dive into The Plan based on what could happen next.