SPX futures are breaking down to the trendline, but may not have crossed it yet. SPX passed the 12.9 market day interval for its decline yesterday afternoon. There may be either 8.6 more days, taking the SPX to July 20 (the day before options expiration) or another 12.9 days taking the SPX to the Wednesday following Options expiration. Either way, it may be a wild ride.

ZeroHedge reports, “U.S. index futures point slightly lower open. Asian shares rose while stocks in Europe fell as energy producers got caught in a downdraft in oil prices and reversed an earlier gain after Goldman unexpectedly warned that WTI could slide below $40 absent "show and awe" from OPEC. The dollar rose, hitting a four-month high against the yen and bonds and top emerging market currencies were back under pressure on Tuesday, following last week’s hawkish rhetoric from central bankers.”

NDX also appears to have completed its correction to Short-term resistance. It has completed 21.5 days in the down trend and is likely to make its low within a day of the SPX.

While VIX has declined beneath its 50-day Moving Average, it remains on an aggressive buy (SPX sell) signal. VIX futures are starting to gain traction this morning.

While TNX is higher this morning, it may not necessarily make new highs.

USD is weaker this morning and may resume its decline. This may bolster the case for a larger decline in SPX and TNX.

I will be away from the office for the better part of the day. I hope to give a progress report later this afternoon.

Regards,

Tony

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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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