SPX completed a 12.9 day Cycle at 2:00 pm yesterday. However, the Master Cycle have up to 8.6 days to go, completing on March 17. If correct, we are due for a bounce that may stay beneath the 50-day Moving Average at 3815.08. The top trendline of the Orthodox Broadening Top appears to lie in close proximity if not in agreement with the 50-day. That is also the 50% Fibonacci retracement level.
ZeroHedge reports, “A much better than expected improvement in the labor market (unemployment rate down and bigger jump in payrolls) was not at all what the market wanted to see.
The ‘good news is bad news’ narrative is back, tilting attitudes slightly less dovish as the economy is believed to be back on the ascendance as more states ready for reopening.
That sent rates spiking higher…”
The 10-year note yield jumped to 16.26 this morning, then pulled back beneath 16.00. It may extend a bit higher today, but it is also likely that this is the Master Cycle high, or nearly so. Today is day 273 in the Master Cycle. The time window is closing…
VIX futures have pulled back to 26.15, a 50% retracement of yesterday’s rally. The Wave structure appears to be a (1)-(2), 1-2. If so, the correction may be over in the first hour of the cash session.