Safe to say that our call for the past 2 dojis made by SPX was indeed the clue to a near term top. Our indicator should tell us how large this correction will be. ES managed to stay above its 60min 200ma and we should see a rally tomorrow. Overall though, many of our various indicators are turning down and is close to moving from bullish to bearish. Until that happens there is still need for caution for a trade to the downside. Our mid-term trend has shifted in one day with this move made today and although has not printed is looking like it has some kick to it.
Mid-Term: DOWN (unconfirmed)
Short-Term: DOWN
The SPX made a 5 wave move down from what I can count. So instead of showing that one I would like to show the SPX ratio chart that has more of the full effect of this down move.
The chart above shows a weekly time frame so the last data recorded has not printed but you see the potential for the start of a trend change or down-trend. Divergences everywhere and all it needs now is to commit itself. Therefore we should wait till end of Friday.
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