This morning’s decline appears to be a promising start, but we would need a decline beneath the Wave [iv] low at 2397.99 to have any confidence that the decline is for real. Otherwise it may be subject to whipsaw and a possible new high.

VIX accomplished a minor breakout, but not enough to give a buy signal. We should see a rally above the 50-day Moving Average at 11.93 before making a shorting decision on the SPX. Even then, we should wait for a pullback.

Things still appear tentative, but heading in the right direction.

The Hi-Lo Index is on a sell signal, although final confirmation would occur with a decline beneath -41.00. It closed beneath the 50-day Moving Average yesterday, so there is nothing tentative here.

Regards,

Tony

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