SPX completed a 77.7% retracement of its initial decline in exactly 12.9 hours today. The A-B-C appears to be complete. Today’s experience is a “déjà vu all over again” of Putin’s first press conference. We know how that ended.

The Hi-Lo ended the day at 225, 20 points above its mid-Cycle resistance at 205.00. That lifts the sell signal with this indicator, but we expected that. Give it another day, since things can change that quickly.

The Trigger for the Broadening Wedge formation is at 1850.00. Below that level the SPX is on a confirmed sell signal.

VIX closed just above its mid-Cycle support/resistance at 14.50. This leaves the VIX confirming the sell signal in SPX.

NDX also completed its retracement in 12.9 hours. The initial selling point is the mid-Cycle support at 3691.37. The sell signal is confirmed at the lower trendline of its Orthodox Broadening Top at 3635.00.

Gold is making its reversal. The initial support level that will confirm the decline is Short-term support at 1348.17. Usually a reversal off the Cycle Top at 1403.75 would be our initial sell signal. However, it fell short of that target, so I am being a bit more careful with the sell order.

I hope you all have a good night!

Regards,

Tony

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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.

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