SPX now has a small Head & Shoulders formation with a Minimum target of 1505.34. That may just be a start, IMO. The February low was 1485.01 and the SPX may be more apt to match that low. This may set up a new Head & Shoulders patterm with a target of 1390 or lower.

In this manner, the SPX may use the same supports on the way down as it used on the way up to decline to the June 2012 low. The 1266.74 low is also indicated as a target for the daily Ending Diagonal at 1555.00.

VIX is now challenging its support/resistance cluster after finding support at the hourly mid-Cycle support at 13.25. We should be seeing a breakout in the VIX today.

NDX was repelled by hourly mid-Cycle resistance this morning after filling its gap. It must now re-cross Intermediate-term and the 50-day support lines. As well as the hourly Cycle bottom support. This may happen rather quickly, since the Cycles call for a quick resolution to the downside.

In fact there appears to be a new Head & Shoulders neckline that defines just how far NDX may go. For all intents and purposes, the Head & Shoulders target is below the Orthodox Broadening Top trendline at 2575.00.

Things may get interesting here.

Regards,

Tony

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