The main indexes
continued to show distinct weakness, with the VIX closing up a
significant 8-9%. The bigger weekly cycles are primed for a collapse
wave into the low sp'1200s by mid-January.
Sp'daily5
VIX, daily
sp'weekly
VIX'weekly
Summary
*this will be brief,
since I just don't have a decent connection to post much.
---
So, the third
consecutive red close for the Sp. This is good, and is a good sign
that the original bearish outlook could yet all pan out broadly as
expected.
Primary downside target
remains somewhere in the 'low sp'1200s', primary target would be
around 1225..by mid-January.
Eyes on the weekly
charts
Bears should recognise
that the VIX is about to go positive cycle for the first time since
July 2011. Most will remember what came next. A VIX surge from the
teens to the mid 40s, that took just a few weeks.
--
I remain somewhat
annoyed that I'm largely without a connection. I'll be back
tomorrow...but perhaps not until the Thursday close. Urghh.
Goodnight from London