SPX Make a 61.8% Retracement
Stock-Markets / Stock Market 2017 Dec 08, 2017 - 06:24 PM GMT
SPX has been challenging the Cycle Top at 4649.38 which is very close to the 61.8% retracement at 2649.68. This may be the final probe with a reversal to follow. From there a panic decline may develop. A 4.3 day decline may take the SPX until Thursday to find a bottom.
While even some bears are expecting another push higher, the Model says a nasty decline may be imminent.
ZeroHedge reports, “Despite soaring stock market values and an endless array of postive survey data from various estabishment-based entities, University of Michigan confidence tumbled in November.
Consumer sentiment in the U.S. cooled for a second month. While current conditions managed to improve, expectations for the future slumped...”
NDX nearly made it to the Wave [a] high of 6380.77. This qualifies the correction as an expanded flat or irregular correction, where Wave [b] is the longest wave. Wave [c] may yet rise to the top of [a] before the reversal.
VIX declined to 9.43 this morning, but has recovered somewhat. Wave2s are know to cause some consternation as they may retrace all the way to the bottom of Wave 1. This is not a buy signal, but can be confusing to some.
The Hi-Lo index is back above the trendline but the danger signal doesn’t come until it rises above the mid-cycle resistance at 97.56. At this point, the Cycles Model says that we may see stocks beginning to decline again around noon.
Regards,
Tony
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