Monday, 23 April 2012

Closing Brief - Bear Victory

A close well above the earlier lows, but we closed within a very clear bear flag on the hourly index cycles. Tuesday could easily open moderately up, but it sure won't stay green for long. Selling any and all mini rallies remains the current plan.


The 10MA at 1368 remains primary resistance, a minor break above that early Tuesday is acceptable...but NOT a close above it. Primary target remains 1340, secondary levels remain 1325 and 1300. A move under 1300 presently looks unlikely in the near term.


I find it interesting that the VIX did hold above the important 10MA today - despite the indexes recovering. The bears would preferably see a further VIX gap up tomorrow morning - although its not absolutely necessary. Primary target remains a break of the recent 21 high, then a fast move to 24.

More a little later, - where I will be looking at a few of the near term possible scenarios/counts.