US indices remain “heavy” and every attmept to rally continues to fail. However, we still do not have the “capitulation event” that would clear the air. All US primary stock indices are at or near critical downside levels and it is increasngly like we are going to see an extrmely sharp resolution. A close above today’s cash session highs by the primary indices would be a bullish signal.
The SPX spent the latter part of Thursday building a minor Blance Area just below a multi-day Balance Area or larger degree, and just above the major KRA below.
It should be noted that there is a divergence between breadth and price at today’s low. In bull trends this is bullish. Currently it is simply more evidence of a sharp move that is imminent.
VIX closed at a new high, and it is reaching a make-or-break level. This is yet another market signal that a sharp move is directly ahead.
