Our three leading indicators are on the bearish side after the close today. The CPC went to 0.91 after close, which is a large turn to the bearish side. The CPCE is 0.73 and the VIX continues a bearish direction.
We had a large distribution day (sell-off) on Monday, April 20 when the market had a solid decline. Distribution days usually come in pairs usually no more than 2 to 7 days apart with 3 days being the norm. We are likely due for a big distribution day on Friday or Moday. It takes a large accumulation day to stop a distribution pairing, which will likely require a break above 875 on the S&P.
The bears have three more days to take the S&P down below 830, say 825, to prove they are in charge.
Due to a small move in the McClellan Oscillator today, we will get a big move to the upside or downside on Friday or Monday. Everything points to a big downside move.
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