A Stock Market Bounce is Due
Stock-Markets / Stock Markets 2016 Jan 20, 2016 - 05:22 PM GMT
SPX hit its Ending Diagonal trendline, making a throw-under at 1812.25. A bounce that re-enters the trading band currently at 1833.69 and retests the Cycle Bottom constitutes a reversal pattern that may be traded. In the meantime, the pattern calls for an exit of short positions.
ZeroHedge writes, “History repeats, if you're just willing to listen. The "Dead-Cat-Bubble" is dead as global stocks enter a bear market (down 20% from May 2015 highs) and US equities catch down to the rest of the world.
*MSCI'S ALL-COUNTRY WORLD INDEX EXTENDS DROP TO 20% FROM RECORD
It would appear the business cycle trumps central planning after all...”
This appears to be that investors have “thrown in the towel.” However, looks can be deceiving. This may be the Master Cycle low we have been looking for. Stay tuned!
Here is a look at the revised Head & Shoulders formation. The decline may be over for now, but there is more where this came from. The Cycle Model still calls for a retracement to 1950.00 – 1968.00, while the 50% Fibonacci retracement level is at 1964.00.
The VIX pattern has changed somewhat. I am not satisfied with the outcome, but will approach the pattern when I have more time..
NYSE Hi-Lo Index made a lower low, so confirmation of a reversal may not come until tomorrow, at the earliest.
TNX hit its Head & Shoulders precisely at 19.50. It seems to be hovering. A bounce is due.
Regards,
Tony
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