SPX has officially crossed its 50-day moving average. Usually Flash Crashes occur after the 50-day is retested from beneath and turns down. A minimal Flash Crash would likely take SPX down to the lower trendline of the weekly Ending Diagonal. From there, SPX may bounce back to mid-Cycle support/resistance at 1567.80. This could be a busy week.

VIX has also overcome its 50-day moving average at 14.88 after testing the Lip of its Cup with Handle formation. It should also bring VIX to the upper trendline of its Ending Diagonal at 18.85. The same concept applies here, inverted. We should see a pullback from the upper trendline in an Intermediate Wave (2) before the larger move occurs.

TNX continues its surge above its Cycle Top support at 27.15. This is a good indication of a third wave and it may continue as long as it stays above that support level.

The Cycles Model suggests that this rally in yields may continue to September 3.

It appears that GLD may have already completed its 3rd wave of [C], which may allow it to rally to its 38.2% retracement level at 137.37. Wave [C] equals Wave [A] at 139.01, but that is an alternate view at the moment. This tells us that GLD may not go as high as we might normally expect. The Cycles Model suggests that the top may be reached in this counter-trend rally as early as this Friday, so be on the alert for any indications of a potential turn later this week.

Regards,

Tony

Our Investment Advisor Registration is on the Web

We are in the process of updating our website at www.thepracticalinvestor.com to have more information on our services. Log on and click on Advisor Registration to get more details.

If you are a client or wish to become one, please make an appointment to discuss our investment strategies by calling Connie or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinvestor.com .

Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com

As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

Anthony M. Cherniawski Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.