SPX is at its Cycle Top resistance at all degrees of trend. You can see the upper trading band coming down in a “squeeze.” This is often a signal of a top. SPX is still within the parameters of the Fibonacci study that I had done on Monday. The market is simply extracting the money out of the most investors that it can.

Correlation may not be causation but it seems more than a few funds were using precious metals as collateral for their levered longs in AAPL...

Something changed on the evening of 1/23... (hint)...

TLT spent over 2 weeks trying to overcome its Head & Shoulders neckline before giving up the ghost yesterday. ZeroHedge mentions precious metals being used as collateral for margin in AAPL. This makes me wonder whether treasuries were also being used?

There may be a brief bounce from the Cycle bottom back to mid-Cycle resistance, but the trend is down.

Regards,

Tony

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