As expected, the SPX Premarket is down again this morning. The “goose” that the markets got at the FOMC announcement are but a temporary reprieve from what is to come.

I will be gone all day to a conference in Indiana, so here is the level at which the market trend turns south. The trendline is self-evidennt, along with Intermediate-term support at 1994.28 as the confirmation of the change in trend.

The Cycles Model suggests an 8.6 market day decline to March 29, the next Pi date. There is a chance of a chaotic decline beginning as early as today, due to options expiration. Be aware of that possibility. If there is any doubt that an 8.6 market day decline can be destructive, remember August 24, which only too, 4 market days from top to bottom.

In other markets, ZeroHedge reports, “Nikkei futures rallied post-Fed into the Japanese open (despite weakness in USDJPY) and then when trade data struck (and exposed the utter failure of competitive devaluation), everything went into freefall. The Nikkei crashed 700 points and USDJPY plunged to its lowest since QQE2... and then - on cue - "someone" started panic selling JPY...”

The bond market isn’t open yet as I write, but 10-year treasuries are higher this morning. This may be an additional confirmation of the change.

The VIX and Hi-Lo are still not at their respective sell signals, but the level for VIX is now 18.00 and the level for the Hi-Lo Index is -120.55.

Stay alert and have a great day!

Regards,

Tony

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