Breaking Point

I’m going to make this one super short – telegram style:

All three possibilities are still in play – if you haven’t seen my Sunday post go back for some excrutiating details. Bottom line: Either we hold 877 or we bust higher to test 895 and probably 910.

We’ve had 4 up days out of the past 5 trading days – we also had 9 up days vs. 4 down days since the January 20 lows. The bulls are trying to best to breach the 900 mark but thus far have failed.

My trusted 2hr stochastics show divergences in the two leading indexes. There is also an intra-index divergence in that none of the other three have followed the NDX’s breach of the January 28 highs (thus far).

The CPC has reached ridiculous levels. Quite frankly – if you are a bear and don’t start rolling into short positions here then I don’t know what to tell you as I can’t think of a better setup.

This is a little jewel I just came across – this is the NYSE New High/New Lows index and as you can see we have not seen extremes like this since the top of Minor wave 2 of Intermediate (3).

Here’s a clean SPX chart marked with that period in our wave count.

Considering all the above is why I’m heavily delta negative at this point and will use any ensuing rallies in equities to add to my existing pile of puts.

Cheers!