sp'weekly7
sp'monthly
Summary
... a long week, and I'm tired...
Suffice to say, the new multi-week lows - below the big sp'1900 threshold, was a huge victory for the equity bears. The VIX fully confirmed the broader weakness, having exploded to 31.06, the highest level since late 2011.
The third consecutive red candle on the weekly 'rainbow' chart, is something we've not seen since Nov' 2012.
The bulls could justifiably argue we are bouncing off support on the giant monthly cycle, but other indexes - notable the R2K, and Dow, are already broken.
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Without question (at least to me), all bounces are to be treated as such, and I will be seeking to be broadly short the US indexes, and Long VIX, until the market hits sp'1650. Whether that occurs next month, or not until early 2015... I don't much care.
Have a good weekend....
...and goodnight from London
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*the weekend post will be on the US weekly indexes