ALERT! - SPX Short - February 8, 2018

Cerundolo Investment Research    


Volume 2, Issue 6
February 8, 2018

Download PDF Version here

Items of Interest:

  • The S&P 500 has formed a daily bearish Money Flow Unit (MFU) off the high with a –10% decline which is rare.
  • Typically, price will distribute creating a daily MFU which will them morph into a weekly MFU and set the stage for a sizable pullback.
  • We need to point this out because the risk is there for another 9% decline from here bringing the S&P to a MFU-2 level of 2346 which is the lower end of the regression trend channel we have been using to show the upper and lower regions of the long-term trend.
  • In our January 23rd Technical Tuesday report, we highlighted the fact that the S&P “is close to the upper end of its regression channel which is an area to watch for a potential exhaustive high.” We didn’t expect a sharp move down like this, but this is what we have to accept and work with.
  • If price can stabilize in the 2450 zone, then the odds are that we will not visit that downside level.



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