The SPX confirmed a sell/short signal on Friday to join the DOW and Real Estate on the short side.  Meanwhile, the RUT has a nice day as investors once again chase beta as markets roll over.  The surprise have been the precious metals and miners, which continue on sell/short trades and once again I’m paying the price for trading against the signal without a stop.  Hopefully, most of you are avoiding them or trading with the System.

The 30 min chart shows my favorite count that primary wave [3] has topped and primary wave [4] is now underway.  The alternative count is looking for another slightly higher high before the ending diagonal is complete.

The daily SPX chart below puts thing into perspective and shows the target zone for primary wave [4].  You can see the weakness of the indicators that continue to roll over.

I believe the NYMO chart is also pointing to more downside.  Typically the trend line off the previous NYMO lows must be broken before the bottom is in.  This would call for a NYMO of at least -60, although I’m guessing it’ll reach -75 or more on this pullback

The daily Renko chart for the SPX has been a nice wave counter.  It’s indicators also are extremely weak.  And the indicators below the Renko, have plenty of room on the downside for more pullback.