It appears that my forecast of a drop to the 50-day was correct, but in a way that I had not imagined. All the red skid marks (excuse me, red candles) that you see may be a running correction where each successive zigzag had a lower top and a lower bottom. It is likely that the first hourly candle this morning was a sub-Micro Wave c of a sub-Minute Wave (ii). We may see a brief bounce at Short-term support at 2076.91, but the real target is the 50-day Moving Average at 2065.83, where a sub-Minute Wave (iii) may put in a low.

One of the reasons for this down draft is the fact that stock buybacks have entered their blackout period.

VIX shot up to mid-Cycle resistance at 14.71. This is a good sign and bolsters the aggressive sell signal. The aggressive sell changes to a sell signal at 15.29.

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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