SPX crossed its lower trendline, as suggested, and is beginning to impulse down. There’s no support until it declines to its 50-day moving average at 1635.59. The cluster of supports are tightly positioned and it may take one attempt to break through, as opposed to the supports being widely spaced, forcing a stair-step decline.
The VIX has broken above its Bullish Wedge. This confirms yesterday’s Master Cycle bottom in the VIX. We will be watching closely to see how quickly the VIX breaks through its resistance zones, which curiously have doubled up at 15.24 and 16.31.
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