SPX completed a Wave (b) of [ii] at 1878.93. Wave (b)s are erratic and do not obey trendlines and necklines as a general rule. While this Wave (b) did break the neckline, it didn’t stay beneath due to the necessity of Wave (c) to finish the correction and relieve the oversold condition. So my anticipation of a pop this morning was correct, but not in the way I had anticipated.

The ramp to 1918.37 was a 55% retracement of yesterday’s decline. There’s always something like this going on!

VIX got pushed back down a bit, but without any structural damage to its buy signal.

While the SPX rallied, the Hi-Lo index hardly budged from its bottom. This tells us there was little or no participation in market breadth while the SPX bounced.

It appears that the FANGs were involved in this morning’s whipsaw.

Regards,

Tony

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