SPX futures were as high as 2684.50, possibly completing Wave [v] of C of (2). Wave [v] is equal to Wave [i] at 2700.00. Wave C may go as high as 2717.00 in a flat Wave (2).

You can see that I have penciled in the upper trendline of a Triangle formation. However, Triangles are corrective affairs and neither Wave [1] nor (1) are corrective. This is setting up to be a bull trap of major proportions.

The clincher is the third potential inverted Master Cycle. Each inversion had a strong decline following it. This should be no different.

ZeroHedge Reports, “For those curious what the fallout from the US withdrawal from the Iranian nuclear deal looks like in the capital markets, the answer is as follows: higher US stock futures, a stronger dollar (at least initially, the greenback has since turned slightly negative) ahead of a $25BN 10Y auction (which may carry the first 3.00% cash coupon in almost 7 years), and perhaps critically, a 10Y Treasury yield rising back above 3.00% again.

But the most closely watched response was how oil would react, and sure enough the bulls have enjoyed the upper hand for now with WTI reversing Tuesday’s "fake CNN news" inspired slump to briefly surpass $71 per barrel, a new 4 year high, while Brent nudged $77 as the market came to terms with a U.S. message that buyers of Iranian crude have six months to curb their purchases.”

I am occupied for the next couple of hours, but will resume my blog later this morning.

Regards,

Tony

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