Friday, May 27, 2016
SPX and BKX: Possible Canary
There's not much to add to recent updates, but I do have a chart that may help act as a near-term canary to help determine if the proposed "flat C" wave is complete. Let's get right to it.
The chart that may help determine if ALL OF C is complete is BKX, as outlined below:
SPX's chart below:
In conclusion, BKX may help point the way to the completion of the proposed C-wave. Because BKX has already declined more significantly than SPX, keep in mind that BKX could make a new low at the dashed red line, then turn and bounce in wave 2/B during which time SPX could make a minor new high -- but an event like that would make any minor new high in SPX a decent sell opportunity against a reasonable stop. Of course, if BKX fails to make a new low here, then we'd have no impulsive declines to signify a turn was underway yet. Trade safe.
Posted by PretzelLogic at 3:25 AM