SPX has declined again beneath its Head & Shoulders neckline and now beneath yesterday’s low at 2034.49 and the Cycle Bottom support at 2032.59. Yesterday’s call and Wave structure were on the money.

VIX has broken out above its 2-hour Cycle Top and its prior high at 17.09. It may be repelled temporarily at the new Head & Shoulders neckline at 17.65,, but not for long.

Most analysts look at VIX on a “fixed” basis and are not yet alarmed at this level. However, it must be viewed on a more dynamic level, since VIX is coming off its “bear market” lows. Crossing the neckline would be the final stage in confirming the new bull market in VIX.

The NYSE Hi-Lo Index closed beneath its 50-day Moving Average yesterday and resumed its decline today. We may be more certain that the Hi-Lo may decline to lower levels going forward.

TNX has made a strong reversal from its high. We may see some bounces along the way, but the next support to watch for is the Head 7 Shoulders neckline at 17.20.

NDX appears to be challenging its May 6 low this morning. It hasn’t declined beneath it yet, but we can check in later to watch its progress.

DJIA has broken through its short-term support. It has also declined beneath its longer support line at 17440.00 that defined its highs since last May. As a Cup with Handle formation, its target appears to be beneath 10800.00.

Regards,

Tony

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