The NYMO cycle is down!
Yesterday we got our second close below the zero line.
This gives us a benchmark of SPX 3205.37, the price high at the last NYMO cycle high.
So, we are looking for a nice move to at least the benchmark over the course of this down cycle.
Interestingly, the benchmark is in the neighborhood of the middle keltner. We shall see.
Warning... The NYMO model has a history of being less effective during periods of QE.
The Fed has been liquifying the market lately, and there is an FOMC meeting next week.
So, this signal is subject to interference...
NYMO has made a nice move today.
Perhaps it keeps going, but it is already ripening for a corrective move back to the zero line.
We have a stack of open gaps below, and Pac Man is ready to start munching.
An up gap was opened this morning. This may need to close before bears get what they want.
We are also still above the upper keltner band. Bears want to see a close back inside the band to gain confidence.
Bottomline. Bears have a shot forming, but bulls may need some more softening up before throwing in the towel.
I am flat.
I have an R2K short setup in play.
A short setup for SPX is percolating but is not ripe yet. Maybe next week?