SPX reached a high of 2088.25, just 9 ticks beneath the 61.8% retracement level and 65 ticks from the point at which Wave v equals Wave I (2088.80). It appears to be about to cross beneath Intermediate-term support/resistance at 2085.85. The likelihood of the retracement being complete is very high. No buy signal was given, so the only thing I might add is to add to any short positions at this time. This retracement was stronger than expected, but considering the end of the quarter is almost here, it makes sense that this rally could be engineered for large investors to take profits at the expense of retail investors.

VIX has made a reversal off its low today. Friday’s bottom looked awfully inviting, but today’s low was still only a fraction lower.

The NYSE Hi-Lo is above its 50-day Moving Average, so we will have to look for another day to get a sell signal confirmation from it. Its Slow Stochastic is at 100.00, so it is overbought to the extreme.

GLD has made three waves down. In order to be a reversal it needs five waves. This can be accomplished with a decline down to Short-term support at 112.93 before a retracement ensues. We’ll wait for the fifth wave and retracement before giving any sell signal at this time.

Regards,

Tony

Our Investment Advisor Registration is on the Web

We are in the process of updating our website at www.thepracticalinvestor.com to have more information on our services. Log on and click on Advisor Registration to get more details.

If you are a client or wish to become one, please make an appointment to discuss our investment strategies by calling Connie or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinvestor.com .

Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com

As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

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.

Anthony M. Cherniawski Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.