VIX’s channel midline tag has been a long time coming. Also, note the TL connecting the previous highs.
Note, also, 10-yr notes could be topping here just above the .886 of the drop from May 2013.
SPX overshot its SMA200 by a wide margin. A backtest at this point would mean a 30-pt rally. Note the completed Butterfly Pattern at the purple 1.272 and the TL of support from 6/12 and 8/7. If bonds and USDJPY play ball, it could happen.
If it doesn’t, and a selling panic develops, I’m looking for 1834-1837. And, of course, the larger scale 1.272 at 1823 is teed up nicely for a backtest. Having paid scant attention to 1823 on the way up, a strong reversal there would be a nice way of emphasizing the “bullishness” of this drop.
One strong argument for 1823 is CL, which is breaking down and appears headed for 64.38, with a potential bounce at 74.02.I will be out of the office tomorrow, Wednesday the 15th, on personal business but will try to post early in the morning. GLTA.