It’s been almost six months since we called the top on SPX. On May 20, I noted that SPX was nearing a key Fibonacci level that should produce a reversal [see: The Last Big Butterfly.] I laid out some potential targets that might be tagged in an unrigged market:
Is there any chance in hell that the world’s central banks and their Wall Street (and, Chicago) accomplices would permit the enormous sell-off that a Butterfly Pattern would normally produce? A typical response would be to the .886 at 1472, .786 at 1381 or .618 at 1228. Even the closest Fib level is 1823 — a 14.7% drop.
SPX didn’t reach 1823. It only dropped to 1867 — a still tasty 12.5% plunge. While TPTB averted another backtest of the 1.272 Fib (it already did it in Oct 14), they left what feels like unfinished business.
Sorry, this content is for members only.
Already a member? Login below…