re: VIX... the more significant upside does not look likely for at least another 2-3 weeks. Once the key 20 threshold is broken above though... the only issue is how high might we spike. The mid 20s look a reasonable target by next FOMC of Sept'17th.
As for the indexes, bears really should be seeking a weekly close in the 2070s.. or preferably 2060s.. along with VIX 15/16s.
Considering recent price action, there looks to be a fair chance of a marginally lower low <sp'2052 (with VIX >16.28). The setup for Friday looks rather promising for the bears, and if the week does close on a particularly negative note, it certainly keeps in play the mid term bearish outlook across Sept/early Oct.
Friday will see Producer prices, indust' prod', consumer sent'. That should be plenty enough to give the market a kick... one way or another.
Not the best of days
For yours truly it was not a particularly great day. It had started well, good breakfast, a haircut, a visit to the bank. I posted my pre-market brief at 7am, and I even got one of my (usually intentionally provocative tweets) mentioned on Bloomberg. A storm front hit London city around 8am EST... thunder, heavy rains, 62f... not exactly a great summers day.
|Who doesn't want to get highlighted on clown finance TV?|
As the rains continued into the afternoon, then I get news my housing move had fallen through.. as the other side of the move had cancelled on me. Frankly, I'm pretty devastated.. it was a home in a place I had dearly wanted to be living before end summer.
The market had naturally weakened into late morning, with VIX battling into the 14s. From there of course... VIX melted to the low 13s. That sure wasn't great to see... although I can be rather patient when it comes to VIX trades. At least my entry is in the 14s and not the upper teens.. or even 20s.
In the late afternoon, a loud crash outside... as yet another set of vehicles collided a mere 20ft from my desk. For some hours thereafter it was then a case of 20/25 emergency crew cutting vehicles open. I've no idea if they were pulled out dead or alive, and in many ways, I'd rather not think about it. Living next to an urban freeway is rarely subdued, and its one reason I want out of the city.
The closing hour of the trading day was at least something for the equity bears, and the setup - especially on the hourly cycle, bodes rather bearish into the weekly close.
As for the housing issue, I hope I'll eventually arrange to leave London city, but right now... it seems like I'll not get out (or should that be 'escape'?) until at least next spring.
On that depressing note of resignation...
Goodnight from London