SPX has declined beneath its trendline and made a 47-66% retracement of its initial decline. It appears that it is now entering a third wave at a sub-minute or Micro degree. There is a lot of empty space to Short-term support at 2321.87. We may add a short position here.

A further decline beneath its earlier low at 2358.96 gives us further confirmation.

The VIX has broken above 12.52 and is in a position to challenge or break out above the 12.86 high. It is currently under the 2-hour Cycle Top resistance at 12.77, but has already broken out above it. This gives us an aggressive buy signal. The daily mid-Cycle resistance is at 13.73. A breakout above it would give us a confirmed signal.

The Hi-Lo Index is still above its 50-day Moving Average at 127.59. There is no confirmation from this indicator, yet.

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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