I tend to make up all kinds of little phrases and nicknames to entertain and annoy you. There was Armageddon ’08, there were the ill-fated 3 Snowmen of 2010, the Fiscal Cliff Kabuki Dance of 2012 and fast-forwarding to today, the SPX drive to 5* which would, if it plays out be a potential final suck in of the FOMOs amid ‘All Time Highs!’ media headlines.
As you can see, that prospect is on life support at SPX fades to test support. This comes amid a serious RSI negative divergence and divergence of its own by the VIX, which we’ve been watching in NFTRH the last couple of weeks.
But SPX clings to the first support here. And I do mean clings, as it closed below the SMA 50 today.
Either way (double top or 2nd hit of the top reverse symmetrical triangle line) we are prepared for a bearish Q4 and last I checked, Q4 started today. So let’s get on with it! Decision time.
* SPX already drove to 5 once already, as anticipated last summer. So it has been under no obligation to do so again.
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