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

The near-term decline in SPX has now closed in on important support, which should likely provide a possible low to this pullback sometime over the final three days of this short week.

Despite SPX having logged the worst trading day performance-wise in over two months’ time, volume was sub-par.  While many blame the shortened holiday week for this lack of volume spike, one would think that volume would be at least a bit more than average on the worst trading day of the year.

Importantly, prices are now hovering right above the all-important 50% retracement area of the prior low to high range.  Additionally, this week represents a 50% time retracement of the prior low to high swing from late December 2022.  (In other words, from 12/22/22-2/2/23 markets rallied for 42 calendar days. 50% in time will arrive on 2/23/23, this Thursday).  Thus, some short-term price and time confluence is approaching.

Additionally, Treasuries look to have sold off in a near-perfect 5-wave decline from 1/19/23, which means that this bounce in yields also should be nearing completion.

I discussed a week ago that the larger cycle composite still looks to trend higher into mid-March but that the back half of February might show weaknes...

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