It’s earnings season and options expiration week for the month of April.
Both of those items have historically been extremely bullish: stocks almost always rally into earnings and options expiration week is the week of for Wall Street to gun the markets higher.
And yet… the stock market is doing this.
![](https://gainspainscapital.com/wp-content/uploads/2023/04/GPC42123.png)
When a pattern that has a lot of historical precedent stops working… it can indicate a serious shift is taking place under the surface of the markets.
I would also note that the Fed’s balance sheet has rolled over, indicating that the Fed is withdrawing liquidity from the system again.
![](https://gainspainscapital.com/wp-content/uploads/2023/04/GPC421232-1024x405.png)
While Bitcoin and other liquidity plays are beginning to roll over as well.
![](https://gainspainscapital.com/wp-content/uploads/2023/04/GPC421233-1.png)
All of this suggests the next leg down for the markets is just around the corner.