SPX has a substantial gap down this morning. It is likely that there will be an attempt to fill the gap. However, should this be the beginning of Super Cycle Wave (C), the gap may not be filled. Find the best level you can to place your short positions, but don’t try to outguess what happens next. You are likely to beat the crowd by being early and let the market do the rest.

It appears that the Head & Shoulders neckline has only momentarily stopped the VIX. The normal retracement after a 5-Wave Impulse is to descend to the mid-Cycle support at 10.68. However, there may be major support may be at the neckline or Cycle Top at 13.14 in the event of a pullback.

This is a major buy signal ISPX sell) for the VIX and should not be ignored.

The NYSE Hi-Lo has given its confirmed sell signal. All stops are out. This is the signal that we have been waiting for.

Regards,

Tony

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Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com

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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