Monday, March 17, 2014

SPX in a Position to Decline Further

By: Anthony_Cherniawski

SPX futures tumbled 10 points at the open on Sunday, but were rescued by the JPY carry. There seems to be some confusion on how the Pre-market reads this morning. It shows the SPX up 10 points, but that appears to be from the Sunday open. The actual value is only 1843.00…maybe on the assumption that no one would read the news over the weekend.

Meanwhile, Crimea is moving ahead with the annexation by Russia, despite all the warnings from the West.

This leaves the SPX in an interesting position. There are clearly 3 waves down from the 1851.64 high on Friday, with a very modest bounce at the close. If SPX stays beneath 1845.00 this morning, it may continue its decline, completing a sub-minute impulse that may extend to the 50-day moving average at 1829.56 before the Minor Wave 4 bounce.

The point is, we must see the SPX break the lower trendline of the Orthodox Broadening Top (near 1820.00) before a larger-degree bounce this week. That implies an Intermediate Wave (1) decline to 1800.00 or even lower.

 

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