Possible Stock Market Runing Correction
Stock-Markets / Stock Markets 2014 Oct 15, 2014 - 05:08 PM GMTGood Afternoon!
We may be witnessing a running correction, which I haven’t seen since September 2002. This is typified by a short Wave a followed by a very long Wave b, then followed up by a short Wave c, as we see in the chart. Today was a Pivot day and the only way I can interpret it is that Micro Wave c topped at 1863.76.
The alternate view is that SPX is nearing completion of Wave (v) of [c]. At this point Wave v is 1.5 times the size of Wave (1).
In the case of NDX, the September 9 high is clearly the to of Wave [ii] or [b]. The decline to 3802.10 is clearly 5 waves, so what we are dealing with is some kind of correction.
If it is, then NDX still has the possibility of a rally back to its Cycle Bottom at 3821.23, or higher. This could happen in the overnight hours, since the selling pressure must be atrocious.
VIX has exceeded its Fractal Similarity target and is still trading near its highs. We may also have a running Wave 4 correction. If so, this is truly a panic situation.
Frankly, I am uncertain about the Wave structure, but it should become clearer over time. All I know is that VIX is on a Panic Cycle until November 5. In all likelihood, VIX appears to be going much higher.
The Hi-Lo Index is at its lowest since June 24, 2013, when it reached -554.00. It reached a low of -1383.00 on October 4, 2011.
There will be more commentary tonight.
Regards,
Tony
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