SPX On Its Way Down
Stock-Markets / Stock Markets 2014 May 15, 2014 - 02:59 PM GMTSPX is on its way, first to the 50-day Moving Average at 1868.64, then to its hourly cycle Bottom at 1860.47. At this rate of decline, we could see this accomplished by the close of the day.
This may be an appropriate level at which to start adding short positions. Further evidence below supports this view.
The Hi-Lo index has surpassed its previous low, giving a probable confirmed sell signal, provided it remains in that position by the close of the day.
VIX hasn’t given a confirmed SPX sell signal yet, but the gap above its Triangle trendline is a good start. I expect to see it cross the 50-day or mid-Cycle resistance about the same time that SPX crosses its 50-day Moving Average. You may consider the sell signal to be confirmed above that level.
Regards,
Tony
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