SPX Stock Market Retracement May be Over
Stock-Markets / Stock Markets 2015 Jul 01, 2015 - 05:40 PM GMT
The SPX retracement was stopped at its Ending Diagonal trendline at 2082.00, having briefly challenged it at 2082.78. It is now beneath the neckline of the Head & shoulders formation at 2075.00. Head & shoulders patterns allow throwbacks for a brief period, as long as the index does not close above them. This one apparently qualifies.
What may have caused the reversal? ZeroHedge reports, “Contrary to suggestions that Greek PM Alexis Tsipras was set to cancel this weekend's euro referendum as part of a negotiated deal with creditors, at least one report claims Syriza isn't set to back down and will go ahead with the popular vote.”
VIX thankfully reversed above the Head & Shoulders neckline. It is now possible to call this a Minute Wave [ii]. Wave [iii] appears to be on its way.
The Hi-Lo index briefly went positive, but remained on its sell signal nonetheless.
The TNX retracement stalled at 24.44 and appears to have reversed course. This is also consistent with the expectation for much lower yields in the TNX.
Crude futures dropped this morning to 57.74, confirming that WTIC may be being sucked into the deflationary vortex of lower prices. The Cycles Model suggests the decline may resume through late July before the next appreciable bounce.
Finally, the Euro has fallen beneath all of its Model Supports on its way to parity and then some.
Regards,
Tony
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