The video in this report is only accessible to members
The video in this report is only accessible to members

The last few days aren’t terribly encouraging given the degree of erosion in momentum and breadth in short order.  While SPX 3906 has not yet been broken, the structure of this week’s pullback has been clearly impulsive from an Elliott standpoint while short-term cycles look to be turning down which has resulted in a break of the uptrend from October lows.  Overall, a counter-trend snapback rally looks likely into early next week, which should get underway Thursday/Friday and help to recoup at least 38% if not 50% of the recent weakness.  However, if Treasury yields start to reassert themselves, this equity bounce could prove short-lived and confirm a new decline with a break of 3906 on a close.  I am more worried now about the possibility of downside volatility in December than I was a week ago.  Near-term support should materialize at either 3890-1 or a maximum of 3860-7 before a bounce gets underway.

The video in this report is only accessible to members

6 Reasons for concern about a December selloff after FOMC

Dominant 81-day trading day cycle looks to be turning back downGann’s Mass Pressure index also shows market peak this weekUptrend from October lows was broken on Tuesday’s weaknessYields have reached support with TNX down a...

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