High Probability of a Strong Move Down in SPX
Stock-Markets / Stock Markets 2015 Apr 08, 2015 - 09:04 AM GMTSPX finally fell off Intermediate-term support at 2085.70. It appears that it may close above the next support at 2080.73. However, whether it does or not, there is a very good probability of a strong move off that support and possibly through the 50-day Moving Average at 2073.77. This is an excellent place to be short, despite the lack of confirmation by VIX and the Hi-Lo. If this is the beginning of Wave [iii] of 3 this is the best positioning you may have.
VIX does not go on an SPX sell signal until in emerges above mid-cycle resistance at 14.87. Final confirmation comes above the 50-day Moving Average at 15.72.
The risk is that both the VIX and SPX may gap through their respective 50-day as early as tomorrow. Waiting for confirmation may mean a loss of opportunity that exists at this time.
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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