Stock Market Bearish Topping Formation
Stock-Markets / Stock Markets 2015 Oct 15, 2015 - 07:27 PM GMTAnother Orthodox Broadening Top appears to be forming. Whether it makes a new high or not, it appears to be valid and has a potential target of 1532.00.
A reversal here that has not formed a new high has a 65% probability of follow through to the downside as it reverses from the top. Those are fair odds for a short position, although I would still call it an aggressive one. The odds of failure of this formation drop to 4% beneath the lower trendline at 1985.32. That corresponds to the 50-day Moving Average, where the sell signal in SPX would be confirmed.
The next Primary Cycle Pivot occurs this weekend (Sunday). The decline may start from virtually any point here, IMO. If it occurs by the close or early tomorrow morning, it may be off by less than a market day. But watch out on Monday!
Regards
Tony
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