SPX is back under its Cycle Top Resistance
Stock-Markets / Stock Markets 2016 Dec 09, 2016 - 04:15 AM GMT
The SPX structure appears to have morphed again. If you can find the structure, you can ascertain what the guidelines are.
The first is that A equals C at 2250.0. That doesn’t put a limit on it, but provides a guideline.
The second is that Wave [v] is 2.38 times [i] at 2251.91.
The third is the entire rally took 162 hours. 162.1 is divisible by both pi and 4.3.
The fourth is that SPX is within 24 hours of a Primary Cycle turn date.
The fifth is that SPX is now beneath its 2-hour Cycle top at 2247.08. We would normally wait for a retest of that trading boundary before going short.
The sixth is that VIX appears to have reversed. It still must rally above its 50-day Moving Average at 14.54 for a but signal, but at least it is warning us of an imminent reversal.
The Hi-Lo is still making new highs, but I will report any signal that it gives. The VIX is usually a leading indicator, while the Hi-Lo is lagging. We usually wait for both to fall into line before committing serious money, although we may “feather in” lesser positions as our confidence in the reversal grows.
The USD bounce may have sparked the SPX rally today. However, it appears to have run out of steam.
Regards,
Tony
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