SPX Premarket is down below 1900.00, eliminating possible round number support. It is still hard to say whether it has completed Wave 2 in its entirety or Wave [a] of 2, leaving a retest of the Cycle Bottom before rising in [c] of 2. Even it Wave 2 goes higher, taking profits and going short got the most of the rally with a small upside risk that may not last more than a day.

Should Friday remain the top, the decline may span 13 market days, nearly matching the length of time taken in Wave 1.

EuroStoxx are down 1% this morning, while Asian stocks are mildly higher.

TNX gapped down, leaving a strong reversal signal by way of an Island Reversal. This suggests the rally went too far too fast and may make that up on the downside.

Crude oil declined this morning to a low of 30.71 from Friday’s close. This is yet another possible confirmation of at least a short-term reversal.

We’ll monitor the decline to see whether it is impulsive or not. This will tell us whether there is another possible probe above Friday’s high.

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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