The SPX achieved its third record high Monday and after a reversal Tuesday added 27 points yesterday, closing at the 5842…the key square-out level of 5840-5850.
While it remained below Monday’s peak of 5871 it looks like that high will be challenged today:
On the heels of TSM’s spike higher following earnings the futes are up 25 points.
As well QQQ is capitalizing on a Classic Combo setup, a Plus One/Minus Two buy/Holy Grai/180.
Despite the series of record highs, Wednesday marked the first time this month that the McClellan Oscillator closed in positive territory—albeit barely, at +15.
Market breadth improved with net advances on the NYSE and NAZ reaching 1,442 and 2106, respectively.
While the SPX, DJIA, NDX and IWM all were solidly red in overnight trading with the VIX higher,
This morning it’s a different complexion.
The VIX and UVXY were strong throughout yesterday’s rally signaling growing caution among institutional investors. This cautious stance was also reflected in the SPLV ETG—a low volatility, risk-off proxy, which surged to a new record high close on Wednesday.
Notably SPLV broke out of a nearly 7 week high level consolidation on Monday to kick off what my many measures a key week.
Interestingly SPLV left a Lizard (Shooting Star) reversal on Tuesday, turned its dailies down nominally on Wednesday and proceeded to rally to that record high close.
Today squares-out with 584. October 17th is opposite 584.
The SPY is testing Monday’s close of 584 here on the open.
It will be important to see if the SPY can extend.
While I have been thinking the ‘vibration’ of 95 (years) from 1929 would resonate in the markets,
If this a Super Cycle top is culminating, then the ‘vibration’ from the 1932 low or 92 years ago is important.
92 squares out with October 29th. The Big Crash Day.
Since the spring, I have been looking at the possibility of a mirror image fold-back to 1929.
If so, is it possible the market crashes UP into October 29th?
If the market wants to stand on its heels, October 29th squares-out with 604 or 6040 SPX.
603 is 180 degrees and straight across from August 5th, where this leg emanated from.
Checking The Truth Teller suggests caution this week:
The July 31st high of 238.63 squares out with October 19th/20th.
July 31st squares out with a price of 227. Right here.
In sum, should cycles have an agenda for a mirror image fold-back with a peak near the October 29th historic debacle in 1929, it must be noted that October 29th is 90 days/degrees from July 31st which ushered in a Flash Crash.
The Flash Crash Mouse gets the squeeze, the second mouse gets the cheese…The Top?