Correction ahead if we go under 1503 on the SPX

1503 is the 50 day moving average as of today. The next step down as I have re-iterated many times before is the mid-1400s. Look at how it went from 1534 to 1512 very quickly.

The CMF has shown a negative divergence with the price since the start of May indicating distribution.

Mid-1400s is the next price target. The volatility is going to shoot through the roof soon as the price approaches the ultimate resistance which I believe to rest somewhere between 1400 and 1440. My price target on the VIX is 23.

 

Got my fingers crossed and my free money from yesterday to buy more Puts!

VIX at 23 would be incredible.

 

And look where we found strong support?
1504.75

 

I saw that. Im waiting to see if that support will hold today. It looks like its making another run for the support.

It did make a perfect 50% retracement from yesterday's fall...

 

This market is going crazy today, from -40 to -15 in about 3 minutes. Jumps and skips all around.

 

It's called volatility, my friend.

 

Since we are now 17 handles off that low ( and the futures retraced 50% during the lunch time "dip" before rallying further ), I would say that your 1503 area held.

 

"C" wave looks to be complete at today's 1504.75 SPX low.
Upward and onward.

See chart.

 

Up we go!!!!!

 

Hmmmmmmm...didi windbag call something important? Stay tuned. :eek: