The VIX has been advancing in tandem with the SPX for several days, a signal that typically precedes a turn in the market.
That warning came to fruition on Turnaround Tuesday as equities finally reacted.
The SPX fell 37 points, the NAZ dropped 216, and the DJIA closed lower by 89.
Market internals reinforced the weakness. Breadth showed net declines across the board with losses on both the NYSE and NAZ.
The persistent divergence between rising volatility and stretched equity prices is now resolving with downside pressure.
The VIX again delivered an outsized move, gaining 3.35% on the day, further confirming the shift in market tone.
This continuation of strength in volatility, paired with broad weakness across equities, suggest that the transition we have been highlighting ideally for September 23 is likely underway.
Remember Monday’s SPX close at 6693 is a potentially important event.
We have been suggesting that there were many factors that mirrored the 1929 meltup.
Well 669 squares-out with Sept 3 the top in 1929.
That was 96 years ago. 96 squares September 23.
That’s a lot of 6’s and 9’s.
It’s interesting that WD Gann stated how to tell the future on page 69 of his coded novel The Tunnel Thru The Air.
The protagonist of Tunnel was born on June 9. 69.
The subtitle of the novel is Or Looking Back From 19 40.
On the Square of 9 Wheel looking back from the numbers 19 and 40 is the number 69.
69 is the symbol for Cancer …ruled by the Moon.
Cancer starts on June 21st, the Summer Solstice, due NORTH on the Wheel.
That’s the tip of the iceberg.
Nicola Tesla knew the 3 6 9.
On Tuesday the SPX (and QQQ) left bearish Train Tracks breaking initial short term support.
When an Ending Triangle is punctured it typically returns to where it started.
That is 6360.
636 (for 6360) is direct (points to) October 2nd.
It would not be surprising to see the SPX kiss that region in early October.