Stock Market No Fireworks Yet, But We May Have Seen the Top
Stock-Markets / Stock Markets 2015 Jul 21, 2015 - 12:03 PM GMTI was amazed this afternoon to see the top come in 61 days from the high on May 21, very close to 3:30 pm on both days. Due to the July 4 holiday, this turned out to be precisely 43 market days, to the hour, from top to top.
This is no guarantee of a top, but as I mentioned earlier, today was indicated by the Cycles Model as an important Cycle high. In fact, my earlier prognostications suggested that today might be a lower high in SPX, which it was. But I am marking it as a slightly truncated Wave 5 of (5) high, since it is only 190 ticks lower than the previous high.
VIX closed higher, at 12.25, but no buy signal, yet. It may come rather suddenly if the SPX futures continue to drift lower overnight.
VIX made a new low today, but it may qualify as a new Master Cycle low. If correct, this suggests the VIX may be making new highs through November!
The Hi-Lo Index closed lower today. At this juncture, I would call it a confirmed sell signal on the Hi-Lo.
Gold burst through the combination Head & Shoulders/Cup with Handle trendline at 1145.00. This should have been no surprise as I had been warning about this. The Cycles Model now suggests a continuation of the decline through the first week of August.
To bolster this view, ZeroHedge reports, “Minutes after the cash equity close, gold prices tumbled, having leaked lower all afternoon, breaking back below $1100. Overnight flash crash lows were $1080.”
I have a seriously overscheduled week, so my commentaries, including the Mid-Week Report, may not be available. I simply hope to catch events as they are happening and report back in brief emails.
Regards,Tony
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