SPX Giving Back its Gains
Stock-Markets / Stock Market 2017 Nov 30, 2017 - 06:43 PM GMT
SPX went parabolic this morning, nearly undoing my Wave analysis. The current Wave structure is invalidated at 2660.13. That was a close call. By 1:00 pm it was over.
Equities are at a spike high which makes it hard to go short, especially after this terrific short squeeze.
NDX has made a 64.5% retracement of its decline, which is helpful. A decline beneath Short-term support at 6343.32 may give us an aggressive sell signal.
The VXN is on a clear buy signal, even though it is beneath yesterday’s close. The NASDAQ Hi-Lo Index, however, it still frothy.
The VIX has been pulsating on both sides of its mid-Cycle support/resistance at 11.05. A close above that level would be a clear, though aggressive, buy signal.
The stick-in-the-mud is the NYSE Hi-Lo Index. This indicator is suggesting a probably rotation into small cap stocks. If true, the spike may be over quickly. In the meantime, this indicator is keeping me from saying “all in” to the shorts.
TNX has broken above its prior high and challenged its Cycle Top at 24.39. This reinforces TNX’s buy signal. The Cycles Model suggests strength may last through the weekend. There may be a breakout above the Cycle Top in the making. I am expecting a terrific whipsaw in bonds over the next two weeks.
USD appears to be probing lower, but has not yet broken down beneath its prior low. There is a Master Cycle low due the week of December 11, so there is not much reason to rally for a while.
Regards,
Tony
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