SPX bounced off both Short-term support and the rally trendline. At the time of the bounce, support was at 2077.37. There appears to be one more probe, possibly to 2088.00 to complete the retracement from today’s decline.

Friday’s bounce appears to be a 37.7% retracement of Wave (i). I wonder what happened to those 80-90% retracements?

An aggressive sell signal may be given once the trendline and Short-term support, now at 2078.20 are crossed. Further confirmation may be had at the mid-cycle support line at 2072.14.

VIX broke through its Pennant trendline. It is now retesting the trendline itself. Just to be safe, I am tempted to call an aggressive VIX buy after it breaks above the mid-Cycle line at 14.82.

The NYSE Hi-Lo Index appears to remain beneath its 50-day Moving Average at 73.62. Should the SPX decline through its supports, we may see the Hi-Lo give us a bit more comfort as well. Remember, we want to see the Hi-Lo close beneath the 50-day.

I cannot ascertain what is keeping TNX from rallying higher. I had targeted 19.40 to 19.60. However, the rally may be complete this afternoon, regardless of the lack of momentum.

The DJIA is still above its rally trendline, as is the SPX. However, the NDX gapped down beneath its rally trendline, leaving an island reversal. The NDX is now on a sell signal. It’s remarkable that there was no mention of NDX’s failure to even venture into green territory in this rally.

Regards,

Tony

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