11am update - messy Monday morning

Its a bit of a mess out there, moderate early morning declines, but now we're seeing a pretty strong rebound. VIX is about to turn red, and that sure doesn't bode well for those bears chasing the lower open. Ouch!


sp'60min

VIX, daily

Summary

There is NO sign of any bearish turn lower, quite the contrary. We could easily see a secondary ramp wave Tue or Wed, and it might even take out the recent 1374 high.

Even if we do break a new high, it does not ruin the bigger picture, although I sure don't want to see any move into the 1390s.

However, when the next down cycle starts, its has to be many times stronger than the recent one that went from 1374 to 1325.

So far today then...everything as expected.

More later.