SPX is nudging at the Trading Channel trendline at 2170.00. A decline beneath it would be considered an aggressive sell signal. More conservative traders would still consider the trendline at 2160.00 as an aggressive sell signal, instead. Take your pick. There is still time for the trade to develop.

Aggressive traders should be used to whiplash by now. However, there is much to be said about a well-placed trade.

You may wish to read Charles Hugh Smith’s blog entitled, “

Could This Rally Be A Head-Fake?” Remember, the Orthodox Broadening Top is meant to give false signals about the direction of the market.

VIX is also pressing against its trendline at 12.15. A breakout above that level may also produce an aggressive buy for VIX and Aggressive sell for equities. VIX has been beaten to a low not seen since August 5, 2015.

But the VIX often takes the elevator to the top, while taking the stairs to the bottom, borrowing from an aphorism to describe the stock market.

The NYSE Hi-Lo Index is also pressing against its 50-day Moving Average. A break down and close beneath 151.20 would also reinforce the SPX sell signal.

Regards,

Tony

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Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com

As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals.

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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