With equities now clearly in a down trend, another key issue is how high can the VIX go. Many recognise that the 200MA on the weekly cycle will be primary resistance - currently in the 19s. Despite the current equity weakness, VIX looks unlikely to break and hold above 20.
*To be clear, I'm not saying VIX 20 won't be briefly broken..but I can't see it holding for more than a few days..if not mere hours.
With the hourly MACD index cycle so low, equity bears are vulnerable to a bounce, but...any such bounces are to be shorted....now that key support is broken.
Downside target zone is 1780/60...which I realise..is one hell of a flip from original target upside of 1860/80.
With the break of support, I can change my mind..yes?
*Do you think Yellen is watching the markets today? If so...is taper'2 off the table next Wednesday, or will the Fed do it anyway?
1.11pm.. CNBC rolls out the Cramer in a bonus appearence to help 'guide us'. I feel calmer now... don't you?
1.34pm.. Bulls battling to hold sp'1800 this hour..not that it matters..with the earlier break of 1815