SPX is approaching its 17-day Moving Average at 2068.26. Just beneath it is the 200-day Moving Average at 2063.50. A decline beneath them would give us a sell signal (confirmed beneath 2063.50). There may be a bounce here, so be aware that SPX may pull back before making the total commitment beneath the 200-day Moving Average. Nonetheless, this appears to be a good entry point, as we will see with the next charts.

VIX has risen above mid-cycle resistance at 16.25. This constitutes a buy signal regardless of a pullback. However, a close above that level gives us a “lock” on the VIX buy signal/SPX sell signal.

The NYSE Hi-Lo Index has fallen beneath its mid-Cycle support at 35.20, giving us yet another confirmation of the SPX sell signal. The 50-day Moving Average is at -54.92, giving us a double confirmation beneath that level. A close beneath those levels also give us extra assurance.

TNX has reversed course at the trendline (not shown), also confirming the reversal in trend.

This also gives us a probable Master Cycle low in USB and UST.

All the best,

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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