Lost In Space
Ryan Mallory | May 12, 2015 12:37AM ET
I think I now have the pattern for this wildly choppy action over the last few days, and it's a falling megaphone that looks likely to break up soon, though we may well see a decent retracement before any test of the all time high. SPX 60 min chart:
Looking at the scan charts TRAN is still the weakest with the obvious target for the current retracement on SPX at 2105 (rising target obviously). A break below that would open up targets lower down, with the daily middle band at 2102 and the 50 hour MA at 2099. On a significant break under the 50 hour MA we could see another of the hard spikes down that have dominated the last couple of weeks. Scan 3x SPX INDU TRAN chart:
NDX and RUT are already testing rising bearish but I'd be looking for SPX to break hard before assuming another spike down had started. Scan 3x NDX RUT NYA chart:
This has been very spiky tape the last few days and it would be very nice to see it resolve into a decent trend move in either direction. Meantime we will just have to wait for this already lengthy topping process to complete.
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