Thursday 11 December 2014

10am update - opening gains set to reverse

US equities open moderately higher, with the sp' retracing around half of yesterday's declines. A move back above sp'2050 looks highly unlikely. Broader downside target remains sp'2000.. whilst the FOMC clock is still ticking down. Oil and metals are both weak.


sp'15min


Summary

Resistance zone of 2044/48. Line in the sand is arguably 2050.. which itself is a mere 1.5% from the recent cycle high of 2079.
-

Seeking renewed downside after 11am.... a daily red close... VERY viable... along with VIX 19/20s.
--

Metals are weak... Gold -$9

GLD, daily


Overall price structure is still a bear flag... with a series of lower highs... and lower lows. $1130 as a key multi-year floor for Gold.... makes ZERO sense. We still look headed for 1000/900s.
-

Notable weakness: miners.... FCX -3.2%.. .see yesterday's 'fair value' post on the copper miners.
-

stay tuned!


10.07am... smaller 5/15min cycles... spiky candles.... first sign of this opening bounce...maxing out.

Eyes to the VIX...
-

10.24am.. sp'2050... well... right on the border. Considering the past few days of price action, it'd be real bizarre if we don't reverse from here.

Notable strength, airlines... DAL +4.5%


10.31am... sp'2054... crazy.... a mere 1.2% from breaking a new historic high.