Stocks Are Showing Weakness
Stock-Markets / Stock Market 2017 Sep 26, 2017 - 11:52 AM GMT
SPX still doesn’t have a completed impulse, but appears unable to make a credible bounce, either. The final hour may give us guidance. So far there is no overlap with Wave (I at 2496.67), so there is still a good probability of a completed impulse by the end of the day or in the overnight market.
His weekend had a strong triple Pivot in the Cycles Model that may indicate the strength of the rally has been played out. If so, we should see the decline continue. The next support is the 50-day Moving Average and mid-Cycle support at 2468.00-2469.00.
A partial short position may be layered in at the bounce.
The VIX appears to have complete its impulse and is now hovering just beneath the 50-day Moving Average at 10.87. Should it break out above the 50-day and Short-term resistance at 10.91, we would have an aggressive sell signal in SPX. Thus far we have seen a mere 43% retracement. A 61.8% retracement would go beneath 10.20.
I am concerned for what may happen in the overnight markets, so you may wish to have a partial short position by the end of the day if this doesn’t resolve to the downside, as well.
NDX continues to make new lows. There seems to be no strength to bounce. I suggest that NDX traders should stay 100% short at this time or complete your short positions at any bounce.
The overnight market may surprise in either direction, so be prepared for that eventuality.
Should there be a bounce, a likely target may be a retest of the 50-day Moving Average.
A continued decline may take the NDX to or beneath its Cycle Bottom support at 5776.17.
Regards,
Tony
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