Let's take a look at the daily chart on the SPX, especially the VI (Vortex Indicator). The last time the it crossed over was back in Feb 24, from which SPX lost 1000 pts within a course of one month. The other confirmation of this downside move is the negative VI crossing above the moving average, as it did on Feb 26, and the RSI bottomed out at 20.
Let's look at this past couple of weeks and we see that the SPX is doing something very similar once again. The VI crossed around September 16th, and now we're approaching, once again, a break above the moving average by the negative line.
In February, there was a break in the 23.6% fib support, then it rallied/retraced back to it, and failing to get above it, tumbled very quickly and ferociously.
We're now once again at same same fib support level, after having a tremendous rally starting from the March lows.
This is time to be cautious and not get suckered in to head fake rallies to the upside. Watch the technicals and while history doesn't have to repeat itself, it does point to what is potentially possible. Have a nice weekend, everyone. Remember that some Asian markets are closed for most of next week due to "Thanksgiving" holiday.
Let's look at this past couple of weeks and we see that the SPX is doing something very similar once again. The VI crossed around September 16th, and now we're approaching, once again, a break above the moving average by the negative line.
In February, there was a break in the 23.6% fib support, then it rallied/retraced back to it, and failing to get above it, tumbled very quickly and ferociously.
We're now once again at same same fib support level, after having a tremendous rally starting from the March lows.
This is time to be cautious and not get suckered in to head fake rallies to the upside. Watch the technicals and while history doesn't have to repeat itself, it does point to what is potentially possible. Have a nice weekend, everyone. Remember that some Asian markets are closed for most of next week due to "Thanksgiving" holiday.