Written by Jim Welsh
Macro Tides Technical Review 24 October 2016
Last week I thought a bounce in the S&P was possible as the market was slightly oversold, continued to hold above the September low of 2119, and the call/put ratio had dropped below 1.0. From the close last Monday at 2126, the S&P rallied to almost 2155 this morning. As discussed for a number of weeks, the more likely path in coming weeks is for the S&P to close below 2119 and be followed by a quick drop to 2050 – 2070. That said there is another pattern that must be monitored.