The early morning futures declined to the upper trendline of the Bearish Wedge and Short-0term support at 1841.00. It is currently hovering at 1846.00 (cash) and is likely to continue its decline after the open.

Crossing the trendline would give the SPX sell signal sometime this morning.

The European markets (Stoxx50) are down 2.25%, which would be the equivalent of the 50-day moving average in the SPX.

VIX futures are up 1.26 points which may put the VIX above its 50-day moving average at 14.95 and very close to hourly mid-Cycle resistance at 15.29. The daily mid-Cycle resistance which I use for the sell signal is at 14.66, so the VIX is clearly on a SPX sell signal if it follows through at the open.

The Hi-Lo index will take a while to register after the open, so I will report on it as the information is available.

Regards,

Tony

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