With the recent low of sp'1993 taken out (new intra low sp'1989), there is empty air to the minor gap around 1950, with first soft support in the 1920/00 zone. VIX is naturally screaming upward, +22% in the 22s. Regardless of any bounces.. it would seem the market is headed broadly lower.
*note the upper bollinger on the VIX weekly cycle, the 30 threshold looks a given, if sp'1920s
Getting rather interesting, isn't it?
Not only is this now the ugliest start to a market year since the 1930s, but the technical breaks should be clear to almost anyone.
As noted at the weekend, unless the bulls can re-take the monthly 10MA, with a Jan' close >2060 or so, the default trade is now to the short side.
VIX update from Mr T.
time for lunch :)