SPX made a LH and HL and closed in the negative that is negative for the markets. The first high came at 8.38 (1286.70) and the second came at 9.19 (1286.68). SPX steadily declined and made the low of the day at 12.35. Then a reflex rally lifted it to 50% of day's range. The range was again a pathetic 6 points. RUT had only one high and that came at 8.48 and a low at 12.41. The counter rally was a little shy of 50% point. SPX had a inside day closing in the negative. This projects a negative day tomorrow. RUT made a HH and HL and closed in the negative. That is not that bad but still negative. The range was 6.30 points and that is also not that bad. Once again RUT looks slightly positive and SPX looks negative for tomorrow
Both the charts on the right are RUT daily. On the channel chart, RUT is on the second median line. It is slightly above the 88% point of the decline from 856 top in 2007. If it doesn't start the decline very shortly RUT may be looking at making a new high above 856.
The second chart on right is Gann angles chart. Here RUT is riding underneath the 3:2 line. When it gets rejected the support should come from the 1:1 line which is around 680. It is not a quesyion of if we get a hit the question is how soon and how violent is the the shock and awe going to be. I know of no one who is expecting it. Market always does what the least number of people expect. From our CIL I learned the $BPSPX the bullish percent EOD index is at 87%. That is a very high number and it is flashing a on coming train.
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