SPX closed under 2200.00, as suggested. Whether that is the end of the rally will be ascertained at tomorrow’s open. All of the Waves appear to be complete and on time.

Note that two new potential catalysts have hit the internet. The first is a “Big Problem” has just emerged for Trump’s Economic Plan. It is expected to add $5.3 trillion to the debt over the next decade.

The second is that a powerful 7.3 magnitude earthquake has just hit off the Fukushima Prefecture of Japan. This comes with a tsunami warning. Later reports have downgraded the earthquake to 6.9.

This has had an effect on USD/JPY which, in turn, may have an effect on the liquidity of the markets.

US Treasury risk has also spiked to a 3-year high after the 10-year T-note has declined over 6% from its July high.

ZeroHedge reports, “Riskless" US Treasury bonds are at their riskiest relative to "risky" stocks since the summer of 2013's Taper Tantrum... and at the same time, bonds are 'cheapest' to stocks in over a year...

US Treasury bond risk is at its highest in 9 months as US equity risk hovers back near 2-month lows pushing the relative risk to its highest since Aug 2013...”

There is a possible Master Cycle low due at the end of this week, but I am not sure that I can put a Wave structure on this chart quite yet.

Regards,

Tony

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