STOXX may have completed an Ending Diagonal Minor Wave C of Intermediate Wave (5) this morning on its 189th day of the current Master Cycle with a nominal new high this morning. This can be attributed to the European GDP positive surprise reported this morning.

However, Greek bank liquidity is deteriorating rapidly. About 12 billion Euros were withdrawn from Greek banks in January and probably even more so after the snap election. It appears that we are on the cusp of some major changes in Europe, starting today or this weekend.

TNX appears to have lost its challenge of the 50-day Moving Average and may be about to go into full reversal. That means money is shifting again. Usually the shift into bonds precedes the rotation out of stocks, so this may be a harbinger of what will be happening today.

The SPX Premarket is up about 4 points as I write, but that may change after the open. The only scheduled news event today is the Consumer Sentiment report, due at 10:00 am. A new high will not change any of the chart patterns, so I am not taking a position one way or the other. I don’t think I will change the current pattern, even if it does, since B Waves can be longer than their corresponding A Waves, which have already happened on the Cycle Wave level.

Regards,

Tony

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