SPX Making Irregular Waves, Making Another Large Retracement
Stock-Markets / Stock Markets 2016 Oct 18, 2016 - 03:19 PM GMTSPX Premarket appears to be headed for the 50% retracement level for the prior decline and the probable top of Wave (a) at 2142.45. We have a probable repeat of Wave 1, where the impulse is smaller than the total decline, including Wave [b].
ZeroHedge writes, “If yesterday's session was dominated by concerns about Fed tightening and rising long-end rates, today fears about a hawkish Fed have subsided, and as a result European, Asian stocks and S&P futures all rose amid speculation Federal Reserve policy will remain accommodative after yesterday's dovish comments by Fed vice-Chair Stan Fischer who offset Friday's hawkishness by Rosengren and Yellen.”
The Cycle from the 2179.99 high to the 2169.60 high was 86 hours. SPX has complete 40 hours of its decline from the 2169.60 high. I don’t think that we may see a flash crash in the next 3 hours, but we may see a significant low at or near 60 hours (Thursday afternoon). Note that hour 43 occurs at noon, so we may see the turn down at that time. The alternate is that the turn may occur at 40.5 hours, making it within the first half hour of trading, so be alert. All sell signals are intact this morning.
TNX is elevated this morning, but there may be a limit to its bullishness. It appears that the current Wave structure may still be accurate.
USD appears to be probing lower. There is no reversal pattern, yet. Today is a Pi date and it appears to be making an inverted Trading Cycle high. It, too may see a turn near mid-day.
I have a very busy schedule outside the office most of the day, but intend to make a commentary in the early afternoon.
Regards,
Tony
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