SPX was stopped twice at 1872.00, but the third attempt apparently was the charm. It now appears that the first attempt at 1872.00 completed a sub-Minute Wave (a) of a Minute Wave [b] and the last attempt was sub-Minute Wave (c) of Minute Wave [b]. The rally attempt may be over.

I am not certain whether the Waves will subdivide even more, but it appears that the target for this decline may be as low as 1740.00.

Remember, today is a pivot day, which means that the market may reverse from its original direction. Since it bounced from the 50-day Moving Average, a decline through that level may bring a strong acceleration to the downside.

VIX has been attempting a breakthrough of its resistance cluster between 14.38 and 14.55. Once it breaks above its prior high at 14.67, it will be capable of matching or exceeding its April 11 high of 17.85.

It will also give a confirmed SPX sell signal above the resistance cluster. The third attempt may also be the charm for VIX.

GLD was repelled by Short-term resistance at 125.37 and appears to be beginning Minor Wave 1 of (C) of [3]. This decline may last the entire month of May.

Last Friday I mentioned that the Long Bond may have peaked and should start impulsing down today. That appears to be the case. We are seeing virtually all major asset classes in decline. Please take note and adjust your portfolios accordingly.

UUP/USD completed its Wave (ii) low this morning and appears to be going higher, finally.

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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