Tuesday, 10 May 2016

10am update - pushing for the gap zone

US equity indexes open broadly higher, with the sp'500 +15pts @ 2074. The gap zone of 2081/77 is seemingly due today. The issue will be whether the bulls can hold the gains. VIX has naturally imploded to the 13s, as Mr Market is utterly confident that everything is going to be just fine this summer.




For the equity bears... this is clearly one of the worse opens in at least a month.

The May 2nd high of 2083 should be a key target for the bull maniacs this week. If that is cleared above.. its open air to 2111... and new historic highs.

Best guess.. .a failure to break/clear 2080. Equity bears need a Tuesday close <2070 to break short term rising trend.. which isn't exactly demanding.

However, if the bears can't restrain this.. then a push above 2111... in which case... you may as well put on that Dow 20k hat.

notable strength.. Oil,  USO, daily

Net higher..  but still looks vulnerable until a break back >$11.00.... otherwise, downside to $10.20.. which is 6/7% lower.