The market has been chattering quite a lot about the massive downside bets on the S&P 500 being placed by some of the industry's best known players.

That is something I would expect from my long time client and mentor George Soros.

But Warren Buffett as well? He is one of the greatest long term, pro America bulls out there.

It is the sort of news that gives investors that queasy, seasick feeling in the pit of their stomachs. You know, like when a new Tesla owner shows off his warp speed “ludicrous mode”?

That is unless you are running heavy short positions in stocks, as I am.

Every technical analyst in the world is pouring over their charts and coming to the same conclusion. A “Head and Shoulders” pattern is setting up for the major indexes, especially for the S&P 500 (SPY).

And if you think the (SPY) chart is bad, those for the NASDAQ (QQQ), and the Russell 2000 (IWM), look much worse.

This is terrible news for stock investors, as well as owners of other risk assets like commodities, oil and real estate. It is wonderful news for those long of Treasury bonds (TLT), the Euro (FXE), gold (GLD), and silver (SLV).

A head and shoulders pattern is one of the most negative textbook indicators out there for financial markets. It means that there is only enough cash coming in to take prices up to the left shoulder, but no higher.

There is not even enough to challenge the old high, taking a double top decidedly off the table.

The bottom line: the market has run out of buyers. Be very careful of markets where everyone is bullish long term, but no one is doing any buying.

When the hot, fast money players see momentum rapidly fading, they pick up their marbles and go home. Some of the most aggressive, like me, even flip to the short side and make money in the falling market.

If we make it down to the “neckline” and it doesn't hold, then the sushi really hits the fan. Right now, that neckline is at $204.60 in the S&P 500 (SPY). Break that, and it's hasta la vista baby. See you later.