Summary

We are looking at the potential for the E-mini, once it closes below 2760, which is the monthly mean, to come down as low as 2706 to 2627.

The weekly B2 level is 2759 and we are expecting overnight or over the next day or so that level to be met.

The monthly B2 level is 2627, which has been activated as a potential target if the market closes below 2760.

This is the Variable Changing Price Momentum Indicator (VC PMI) weekly update for March 6, 2019.

Looking Back: VC PMI Bull Trap Predicted

On February 26, I wrote¬†an article¬†for Seeking Alpha titled, “The E-mini S&P 500: It is a Bull Trap!” When that report was published the E-mini S&P was at 2791. At that time, we indicated that if the market rallied up to the levels of 2805 to 2815, to take profits. We clearly stated in the report, “Look to take some profits on longs as we reach the 2805 to 2815 levels” (sell 1 and sell 2 levels of the VC PMI), which are the highest probabilities for the reversion to occur back down to the mean. The sell 1 (S1) level has a 90% probability of a reversion to the mean based on a 1:1 factor. The sell 2 (S2) level has a 95% probability of a reversion to the mean with a relative implied volatility factor of 2:1.

Courtesy: TDAmeritrade

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