Good morning. Equity futures are moderately lower, sp -13pts, we're set to open at 1975. A natural retrace of the hyper bounce (1867/1993: 126pts) remains the 1945/30 zone... which looks probable by Tue/Wed.
Regardless of any retrace in the first half of this week, a more important issue is that August is set to close seriously bad for the bull maniacs.
The sp'500 is set for a net monthly decline of 5-7%... with a red candle on the Elder chart. Unquestionably... we have a turn on the grand monthly cycle. A hit of the lower bollinger in the low 1800s looks a given in Sept/Oct.
Increasingly.. the low 1700s look viable by mid Oct. First things first though... lets close out the month.
AAPL -0.8% @ $112.30s
NFLX -2.6% @ $114s
Update from Mr C.
Overnight China action: yet again, the Shanghai comp' struggled across the day... and then a rather strong late day ramp, settling -0.8% @ 3205. It looks like the SSEC is headed for the 2500/2000 zone by end Oct... and that will no doubt infuriate the communists overlords.
The China SWAT teams are increasingly raiding anyone who dares suggest the market can go down. Does the UK have an extradition treaty with China?
yours... ready to repel borders.
8.00am ... sp -11pts, 1977.
Indeed, I am bullish VIX for Sept/Oct. :)