A very mixed day, one where opening declines were erased with a morning mini-ramp, only to see renewed weakness return after lunch, with the broader market closing moderate lower. The VIX appears to have floored, and closed a touch green, and thus confirmed the underlying index weakness.
Today was another fine example of how the rallies are to be sold into. The bulls have been valiantly battling for almost two months now, and EVERY rally is failing (at least across a multi-day time frame).
The price action into the close was pretty bearish, and there is now the potential for a major gap lower early Wednesday morning.
With the VIX hourly cycle primed for a good 4-6 hours upward action, everything is now setup for the bears.
If we don't break into the 1350s tomorrow - at least briefly, I would be kinda surprised.
I remain short, holding to my primary target of sp'1345.
A little more later.