The Big Picture: Nov 12, 2015

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.

2015-11-12 SPX harmcontinued for members


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