SPX declined just ticks below its Broadening Wedge trendline. This would be considered the official crash trigger, although most would wait until it crossed beneath the 50-day Moving Average at 2064.31. Considering that the Ending Diagonal already projects a decline beneath that level, it would not be out of the question to take an aggressive short position.

VIX has a way to go to be back on a SPX sell signal…I would expect to see VIX back above 15.21 to 16.71 before it issues a sell signal.

The NYSE Hi-Lo index is another indicator that may take another day or two to get back in the sell signal.

Gold may continue to rally to 1200.00, but I wouldn’t give it more than that right now. A decline beneath 1175.81 could put it back on a sell signal.

Crude broke above its previous high and may rally until the end of the month. It has support at 44.82, so as long as it stays above that level, it may continue its counter-trend rally.

I may be called away for a family emergency that is developing, so my schedule tomorrow appears to be at risk. Please be aware that I may not be as timely in my reports as you have become used to.

Regards,

Tony

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As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

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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