It appears that SPX Premarket has risen to the range of 1937.00 this morning. That means the Wave structure has morphed into a Minor wave C. The target for this wave [Where Wave (v) equals (i)] is 1945.48. An expanded flat Wave (2) would terminate in the range of the Wave A high at 1947.20. The Broadening formation trendline appears to be near 1952.00, so this gives us a range of outcomes for today.

Tomorrow is a Trading Cycle Pivot, but there are two lesser Pivots today. The rally may spend 40.5 hours, which would place it near the 13:00 hour today. The next option is 43 hours, which places the top near the end of the day.

The global slowdown in revealing itself throughout the world this morning.

TNX is bouncing ever so slightly, which leads me to take another look at the Treasury Bond history. The 30-year bond indeed had a high yield of 15.2% on September 29, 1981, but it had a marginally higher yield at 15.21 (which I missed in my original research) on October 26, 1981. If you line up October 26, 1981 (1981.819) and add 34.4 years, you come to a high on March 21, 2016 (2016.219).

This lines up with the next Master Cycle low in equities also on March 21, 2016. The outcome of this is that the change in timing would have led us to a tradable bounce at 1810.10 rather than expecting the decline to resume more quickly.

In any event, the next decline for equities into the March 21 low will be a monster.

The USD futures are taking a final swing higher at 97.61 this morning before the Wave 5 decline. The minimum decline appears to be 93.81, while the stretched version appears to take it to 91.80.

Regards,

Tony

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