Tuesday, 5 January 2016

12pm update - the bear flag continues to grow

US equities remain moderately mixed, with a rather clear bear flag continuing to grow from the Monday low of sp'1989. The lower gap zone of 1954/51 remains an arguably straight forward downside target, whilst the bigger weekly/monthly cycles offer 1920/00.




Rest of the day looks like more of the same.

A daily close somewhere around 2020/25 looks probable.. with 2030 early Wednesday.

Frankly, I think anything >2020 makes for a valid short. I'll likely pick up an index-short early tomorrow.... and am in no hurry today, as market is merely churning.

notable weakness..

AAPL -1.2%
DIS -1.7%
F -2.7%.. a stock that has struggled for a long.... long time.

Oil/gas drillers, RIG/SDRL, both lower by 4/5%. Capitulation in the energy sector is likely this spring/summer... when some of the mid tier names might disappear. Same for mining.

VIX update from Mr T.

time for tea