SPX is pulling back from a 21-wave impulse to 2096.68. The rally cannot get any steeper than this as the rally made 5.27% in three days. An 86.3% retracement.

For simplicity sake, I am labeling this Wave C of (2), which makes this an irregular correction. For political sake, this quarter needed to close above the March 31 closing price of 2059.74, about a 1.5% gain (with lots of volatility) for the past quarter. The trendline may be crossed at or below 2090.00.

The VIX and its ETNs were hammered in order to achieve this purpose. However, VIX has re-crossed its 50-day Moving Average at 16.08, reinstating the aggressive buy signal.

TNX reluctantly joined the surge today, but has already give most of its back.

EUFN managed to rally back to its Orthodox Broadening top trendline. European financials are only beginning to decline as the brief period of strength wears out.

Can we trust this market? I think not!

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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