FIBONACCI 61.8% COUNTER RALLY NOW OVERBOUGHT - LIKELY "B" WAVE DOWN BEFORE YE "C" UP

On a monthly basis, the backdrop has also worsened. RSI has dropped into correction territory along with a confirmed monthly sell signal. Extensions of the market that move 3-standard deviations above the long-term mean are unsustainable.

The chart below is a broad technical look at longer-term indicators. Notice that these indicators have only previously unanimously aligned when the market was reversing its trend. That global alignment is occurring once again.

https://www.zerohedge.com/sites/default/files/inline-images/Monthly-Checklist-110918.png?itok=0jjOgY_Q

Participation in the markets remains extremely weak. This is just another indication of the change in the “tenor” of the market to a more bullish backdrop.

https://www.zerohedge.com/sites/default/files/inline-images/SP500-Participation-Chart1-110918.png?itok=7P3PP09T

The counter rally is now Overbought after achieving a 61.8% Fibonacci retracement.

https://www.zerohedge.com/sites/default/files/inline-images/SP500-Chart1-110918.png?itok=w78Yno-I

 

https://www.zerohedge.com/sites/default/files/inline-images/SP500-Chart2-110918.png?itok=zAPZNT87

 

https://www.zerohedge.com/sites/default/files/inline-images/2018-11-09_10-02-48_0.png?itok=p34GefTu