Stock Market Confirmed Sell. Bounces Still Possible
Stock-Markets / Stock Markets 2016 May 13, 2016 - 09:31 PM GMT
SPX has crossed its 50-day Moving Average at 2055.10 and is headed for the Head & Shoulders neckline at 2040.00. I know that it is a shallow formation, but there is a potential for another neckline at 1967.85, where another support lies. The target for that formation appears to be nearer 1800.00. Fourth wave necklines are not as strong as those at a wave one. However, they can be equally valid. Let’s see how it follows through beneath the neckline.
So far, this decline has the potential of being a Wave b of (ii). If so, we may see a bounce into the close. The ideal would be only a partial retracement back to the 50-day Moving Average at the close.
VIX has been slow to rally above its 50-day Moving Average at 15.05, but has finally, reluctantly done so. Indications are that it may go higher before the day is done. VIX is back on a confirmed buy. as additional confirmation comes at the breakout at 15.42.
The NYSE Hi-Lo Index is hovering near the 50-day without a clear signal. We may yet see one aby the end of trading today.
TNX has also broken through its Head & Shoulders neckline at 17.10. This is the kind of confirmation we are looking for.
Equity shorts are a “go” here. Just be aware that there may be a push back at the end of the day.
Regards,
Tony
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