Tuesday, 5 January 2016

11am update - chop chop

US equities are stuck in moderate chop mode. Price structure remains a bear flag, and that seems set to drag out into early Wednesday. VIX is holding above the key 20 threshold. Metals remain choppy, Gold +$1. Oil is -1.8% in the $36s.. ahead of the next pair of inventory reports.



So.. we're stuck in chop mode, as Mr Market is battling it out.

sp'1989 makes no sense as a key low, never mind the fact that yesterday saw key technical breaks all over the place.. not just the US. but across most world markets.

From a pure short term trading perspective, it is surely just a case of looking for a level to short from.. rather than 'buy the dip'... even in the higher quality companies like AAPL, INTC, or DIS.

Right now, sp'2030 looks an interesting level/junction early tomorrow.

notable weakness...

DIS, daily

The $100 threshold looks unlikely to hold. Next support is around 98/97. The bigger monthly chart offers $80, but that would require a Jan' close <$100.

time for an early lunch