Repeat

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Stocks once again were rejected by the 10 day MA and closed below the 200 day MA.

spx

Following the daily cycle peak, stocks printed their lowest point on Tuesday then went on to tag the 10 day MA. Wednesday they were soundly rejected by the 10 day MA and closed below the 200 day MA. Once again today stocks were rejected by the 10 MA and closed below the 200 day MA. While our daily cycle count is not clear , what is clear is that stocks are currently in a failed daily cycle. And we are looking for a swing low and declining trend line break to signal a new daily cycle.

Meanwhile, the daily bond cycle appears to have peaked on day 7 — again.

tlt

This is the third daily cycle that bonds peaked on day 7 and formed a swing high on day 8. Not only did bonds form a swing high but they closed below the 50 day MA in a clear and convincing manner. A break below the developing daily cycle trend line would deliver an early warning for another failed daily cycle.

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4 thoughts on “Repeat

  1. Tomorrow I expect a big down day right from the opening on SP 500,DJ etc.
    I agree with your analyses on SP 500.

    Here is some targets:

    My target for Q4,2015 is a level 1875.00 on SP 500. It is very possible to see level of 2010.00 tomorrow.

    My target for EUR/USD is 107.300 print no later than 10/01/2015 and 104.595 no later than 12/15/2015.

    Best regards,
    Ivo P.

    • Ivo,

      I would like to see stocks make a lower low. That would help to clarify our cycle counts.

      LM

  2. I doubt.market always tricks everyone. And there is a fed to protect. We should bounce couple days then may be 2010 level.

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