Nothing is as simple as it first appears. However, the new Orthodox Broadening Top is giving us a clear crash signal at the lower trendline of the Larger Orthodox Broadening Top. This is reminiscent of the 1987 crash which had a larger Broadening Wedge and an Orthodox Broadening Top in the Wave 2 position.

You can see that I reinstated the old Wave structure, since SPX did not go higher than yesterday’s Pivot. I do not know how long SPX will remain at these levels, but I recommend a double short positon for those who can accept a more aggressive stance.

VIX remains on a confirmed SPX sell signal from a week ago. The Hi-Lo Index remains stuck at the bottom of its trading range and also on a confirmed sell signal.

Tony

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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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