SPX appears to be wrapping up its retracement at the 50% Fibonacci level. This is an irregular Wave 2 in the form of an expanding diagonal. Normally we see prices go to the mid-Cycle resistance, but the SPX does not appear as if it will go any higher.

NDX appears to be making roughly a two-thirds retracement at 66.9%. It appears that it may not make the lower trendline of its Broadening Wedge formation.

This is a good place to add short positions to the NDX.

VIX is making a near-perfect 61.8% retracement, which is unusual. The stopper also appears to be the Intermediate-term support at 12.99.

MUT has briefly gone above its Head & Shoulders neckline, but that may not negate the pattern if it closes beneath it later today.

All of these indices are poised for a Wave 3 decline. I don’t see how they can be held up for another two days in order to get through options expiration again.

A flash crash may achieve the Broadening Wedge targets shown in the SPX, NDX and MUT charts in as little as 4.3 days.

Regards,

Tony

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