BKX 898 breaks and the snowball accelerates downhill. Recall this post from MITA 5,802 it took awhile to unfold but the gap is gona get filled at SPX 1,278 - 1,280 and SPH 1,290 - 1,300.
The Backtest:
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...<The venus fly trap is set again. The rug is going to get pulled from da bulls. This time compliments of BKX. The money has piled in long into overbought levels as measured by the 5 day rsi levels and rydex bkx jam job in total assets as BKX closed up another 10 + points to BKX 906.06 with an intraday high of BKX 907.52. This is right into our BKX 910 zone from our last Rydex Update MITA 5,787:
...<BKX Analysis:
Watch the BKX from todays close and into Tuesday's intraday high. A 5 minute chart shows this rounding top as BKX did not participate in the final 15 minute melt-up in the market today . It simply stalled. I am anticipating an intrady high around BKX 910 before it turns back down>...
The only thing to play out is if todays intraday high was the level where we turn back down or if it is sometime early on Wednesday. No matter, the BKX is going to take down the SPX back below SPX 1,300 and into this SPX 1,278 - 1,280 gap level. Today the SPX closed at SPX 1,315.19. The SPX 15 minute chart shows the small gap:
charts-d.quote.com:443/977894012630?User=demo&Pswd=de...
On the SPH March Futures contract the gap to get filled is at SPH 1,290 - 1,300 level the 10 miute chart:
charts-d.quote.com:443/977897766410?User=demo&Pswd=de...>...
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SPX is now down 24 to SPX 1,296 - intraday low SPX 1,293. Target SPX 1,280 intraday.
BKX down 14 to BKX 887 - intraday low 884. Target BKX 860 intraday.
Then comes the reversal back up.
Best Regards, J.T. |
