EOD: All the vectors aligned today as in a reversal scenario. Whether the island tops close or not in the next session, it looks like a market acceleration down is most likely imminent.
Update 12:00pm EST ES futures Sep 16 2020 (3156.25) is very close to a fib extension at 3151.00 so that puts that hit close in to a potential top. So far there has been a downward reaction from there in the market. The vectors that moved after that hit did so in a typical topping fashion. Follow-through will be needed to confirm as the breadth is holding up so far and not at a negative value as far as the MACD signal. It is not required but would be more typical to see a negative value on breadth if there's to be a follow-through. There is overlap into the gaps on INDU and SPX 'island tops' so we will have to see if they will be closed up which will void the island top as a defined structure.
Original post:
At VectorSpike we have gone out on a limb more than once recently only for the market to outdo even our extreme scenarios. The situation looking at these charts looks unlike anything we have encountered and we are not sure how it is going to resolve exactly but it looks very precarious at the moment and almost un-definable in conventional terms. Look at the potential 'island top' and the relative retrace shortfalls between SVXY and INDU (and SPX). Even with the adjustments to SVXY at the beginning of 2018, it does not look any where near the correct relative positioning. Typically, lagging this way would mean more downside to exhaust SVXY's bearish move so it can rebound. That has not happened yet. Short term moves could of course do pretty much anything but the longer term looks extremely odd if it is to continue in a bullish market scenario.
1918 Pandemic Did Not Tank The Market!
See Critical Long-Term Review Here
No comments:
Post a Comment