Best of the Week
Most Popular
1.Canada Real Estate Bubble - Harry_Dent
2.UK House Prices ‘On Brink’ Of Massive 40% Collapse - GoldCore
3.Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - Nadeem_Walayat
4.Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - Marc_Horn
5.5 Maps That Explain The Modern Middle East - GEORGE FRIEDMAN
6.Gold Back With A Vengeance As Bitcoin Bubble Bursts - OilPrice_Com
7.Gold Summer Doldrums - Zeal_LLC
8.Crude Oil Trade & Nasdaq QQQ Update - Plunger
9.Gold And Silver – Why No Rally? Lies, Lies, And More Lies - Michael_Noonan
10.UK Election 2017 Disaster, Fake BrExit Chaos, Forecasting Lessons for Next Time - Nadeem_Walayat
Last 7 days
Stock Market Levitation Continues... For Now - 27th Jul 17
Is Big Oil planning its Funeral by ignoring the obvious? - 27th Jul 17
Why Surging UK Household Debt Will Cause The Next Crisis - 27th Jul 17
Reconciling the US Dollar Outlook with the Super Bullish Gold and Silver COTs - 26th Jul 17
Last Week’s Rally in Gold Stocks Erased - 26th Jul 17
Dollar, Bitcoin, Markets - Is There A New Flight To Safety? - 26th Jul 17
Central Banks ARE The Crisis - 26th Jul 17
Iran: Public Image Versus Historical Reality - Part 1: An Abridged History to the 20th Century - 26th Jul 17
Trump Fails To Understand One Critical Thing—Our Trade Partners Have Options, Too - 26th Jul 17
Stock Market and Gold Stocks Trend Forecast Update - 25th Jul 17
Saving Illinois: Getting More Bang for Its Bucks - 24th Jul 17
3 Stocks Sectors That Will Win in The Fed’s Great Balance-Sheet Unwind - 24th Jul 17
Activist Investors Are Taking Over Wall Street, Procter and Gamble Might Never Remain the Same - 24th Jul 17
Stock Market Still on Track - 24th Jul 17
Last Chance For US Dollar To Rally - 24th Jul 17
UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - 22nd Jul 17
Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts - 22nd Jul 17
Warning: The Fed Is Preparing to Crash the Financial System Again - 21st Jul 17
Gold / Silver Shorts Extreme - 21st Jul 17
GBP/USD Bearish Factors - 21st Jul 17
Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing - 21st Jul 17
Is It Worth Investing in Palladium? - 21st Jul 17
UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - 21st Jul 17
The Fed May Show Trump No Love - 20th Jul 17
The 3 Best Asset Classes To Brace Your Portfolio For The Next Financial Crisis - 20th Jul 17
Gold Stocks and Bonds - Preparing for THE Bottom - 20th Jul 17
Millennials Can Punt On Bitcoin, Own Safe Haven Gold For Long Term - 20th Jul 17
Trump Has Found A Loophole To Rewrite Trade Agreements Without Anyone’s Permission - 20th Jul 17
Basic Materials and Commodities Analysis and Trend Forecasts - 20th Jul 17
Bitcoin PullBack Is Over (For Now): Cryptocurrencies Gain Nearly A 50% In Last 48 Hours - 19th Jul 17
AAPL's 6% June slide - When Prices Are Falling, TWO Numbers Matter Most - 19th Jul 17
Discover Why A Major American Revolution Is Brewing - 19th Jul 17
iGaming – Stock Prices - 19th Jul 17

Market Oracle FREE Newsletter

Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts

World Markets Are in Sync

Stock-Markets / Financial Markets 2016 Feb 10, 2016 - 03:36 PM GMT

By: Anthony_Cherniawski

Stock-Markets

Good Morning!

In order to understand what is happening to SPX, we must also look at the other major indices to gain a perspective.

Yesterday the Nikkei declined to, but below a major support, otherwise known as a head & Shoulders neckline. This morning I can say that the Nikkei Index broke that support and is poised for the follow-through.


The Cycles Model suggests a Primary Cycle Pivot (low) this weekend. That suggests a possible 23% decline in the next two + days. Since the Pivot low happens on the weekend, the decline may “bleed over” into Sunday night.

The EuroStoxx 50 Index bounced to 2818.61 this morning as I write. This “touchback” of the Head & Shoulders neckline is acceptable and will relieve the oversold pressure enough for another plunge.

The Cycles Model suggests a Primary Cycle low on Friday, with a possible extension to Tuesday.

The SPX Premarket has bounced back to its smaller Head & Shoulders neckline at 1872.00 and its Cycle Bottom resistance at 1877.81. The retracement now appears complete and the decline has begun. A 38.2% retracement would terminate at 1873.82. I have re-labeled the Wave structure. After further thought, there doesn’t appear to be enough time for a more complex decline.

What prompted this was the memory of the October 10, 2008 Wave (3) bottom, which did not quite reach a massive Head & Shoulders target at 825.00. Instead, it bottomed at 839.50, causing me to delay taking profits. The SPX rallied 10% in less than an hour of profit taking.

I also wish to correct the timing that I had laid out yesterday evening. Depending on whether SPX makes a new high or yesterday’s high remains, a 17.2 hour Cycle will last until 11:00 am to 12:00 am on Friday Morning. A 21.5 hour Cycle may last until 3:00-3:30 pm on Friday. Today is a Primary Cycle Pivot and Friday is the next primary cycle Pivot, which may define both the top and bottom of Wave 5 of (3) of [1].

I also changed the EW structure simply because there is not enough time to complete anything more complex.

TNX is challenging its 2-hour Cycle Bottom, but doesn’t appear to have overcome it. This suggests at least a mild pop in the SPX. At this juncture, it appears that yesterday’s high in the SPX will stand.

WTIC has just made a new low at 27.62, beneath its daily Cycle bottom at 27.67. It appears that crude oil two potential bottoms this week. The first Primary Cycle Pivot is today and the second on Friday. If it makes a new low beneath 27.56 today, then we will be expecting its Master Cycle low on Friday.

Regards,

Tony

Our Investment Advisor Registration is on the Web

We are in the process of updating our website at www.thepracticalinvestor.com to have more information on our services. Log on and click on Advisor Registration to get more details.

If you are a client or wish to become one, please make an appointment to discuss our investment strategies by calling Connie or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinvestor.com .

Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com

As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

Disclaimer: The content in this article is written for educational and informational purposes only.  There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

Anthony M. Cherniawski Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife