SPX Stock Market Tops in 87 Hours
Stock-Markets / Stock Markets 2016 Jun 07, 2016 - 05:58 PM GMT
It appears that SPX has topped out at 1:30 pm (1330 hours) at 2119.22. The rally took almost exactly 87 hours, VS the 86 I had suggested. So, what’s an hour in the greater scheme of things? As I said earlier, the decline to 2025.91 took 44 hours instead of 43. It is what it is.
The reason I am writing is that there is a technical limit to this rally at 2120.16. Should it go higher, something else is going on with the Wave structure that I haven’t perceived. Wave [v] equals Wave [i] at 2117.54, which has been exceeded already. On a smaller scale, Wave (v) is equal to 1.382 times Wave (i) at 2119.55, which appears to be the closest fit.
Since SPX is above its Broadening trendline, we may use its as an aggressive entry point. The Broadening trendline is at 2114.80, give or take. Otherwise, the next short entry is beneath 2085.00.
VIX has been remarkably positive, considering the movement in SPX. It is not very far away from its 50-day Moving Average at 14.50. We may use that as our VIX confirmation.
The Hi-Lo index is going higher, so there is no immediate signal there.
TNX hasn’t made any new progress in its decline, but it is already on a sell, so we have one out of three indicators indicating a change of trend in stocks.
Regards,
Tony
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