SPX has made a measured move, so far. The rally from the 2050.37 low has taken 34 hours. Another .4 hours would make it divisible by 4.3. you can see that the volume is low, so there is little participation or short covering.

The VIX low at 17.73 remained above its daily mid-Cycle support at 17.71, leaving VIX on a buy signal after making an impulsive move higher. Given the circumstances of investors expecting a “black swan,” I would take it with a small grain of salt.

The fact is, markets don’t react to news as we think they will. For example, the Pound sterling is due to collapse by 20% no matter which way the vote goes.

TNX is off its high, but hasn’t broken through its Pennant trendline. The trendline lies at approximately 17.10, so a decline beneath 17.00 would give an adequate sell signal.

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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