SPX Making a Double Zigzag
Stock-Markets / Stock Markets 2015 Jun 03, 2015 - 05:15 PM GMT
SPX has completed a double zigzag. This does not fit a Wave (c) ending, but tells us there is a high likelihood for yet another zigzag to complete an Ending Diagonal formation. The target appears to be 2126.22, which will make it an Expanded Flat Wave [ii]. It may also delay the decline until Monday.
However, ths analysis is void should the SPX decline beneath 2109.48. The confirmed sell trigger is still the 50-day Moving Average at 2100.73.
UST futures appear to have hit bottom today at 125.59. This qualifies as a Master Cycle low (259 days) for both UST and USB. I’ll attempt to get the Mid-Week report out tonight with commentary on USB.
Martin Armstrong writes, “The Fed will be forced to raise rates, and both Congress and the media will blame them for not raising rates sooner and for creating an asset bubble. They will have no choice because that is their job, as expected from the public at large. Even in Australia and Canada where there are real estate booms going on in Sydney and Toronto, criticism is rising attributing the booms to low interest rates when in fact it is foreign capital inflows that have some calling Canada the new Switzerland. The problem is always blinders on with analysts who only see everything domestically and are ignorant of international capital flows.”
Read the article in its entirety. Some of you may remember that I had done a study of the Fed Fund rates VS the 90-day T-bill rates from 1949 to 2007. Not once did the Feds raise or lower the Fed Funds rate before the 90-day T-bill rate made its move. In fact, may times they were 90-120 days behind, giving the Primary Dealers the ability to profit from the spread.
Regards,
Tony
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