There is a very real danger to the market having a significant drawdown. Please keep in mind my overall believe is the market will go significantly lower, as much as 50% lower from here at some point.
The question is, do we go up 25% more from here, or have seen seen the third failed push up and the market is now exhausted and about to fail?
A break below S&P 500 of 1040 is a HUGE warning sign. I expect when we break it, it will happen overnight, trapping everyone. The longs will be panicked, the shorts won't have been well positioned.
Hard to tell, but cash is still best. Good luck.