One trick today: CPCI > 1.55 which means a green close next Monday. CPCI has been wrong twice recently. This greatly reduced its successful rate and it now represents only 64% chances. Also on the recent 3 failed cases, the CPCE were all closed less than 0.60 and today we had CPCE sit at 0.58, so personally I won’t read too much into this CPCI thing. The bottom line, I have no proof so far that the pullback is over but at the same time the CPCE trend line I talked in the last night’s report didn’t hold today, so I have no proof that on the intermediate-term the market was topped either.

CBOE CPCIWatch

Enjoy your weekend!