With the market dropping around 1%, things are starting to get real interesting again. The bigger cycles remain bearish of course, so the underlying pressure is ALWAYS downward. So far the VIX is spiking higher...and confirming trouble for the rest of this week - which is filled with key econ-data.
Sp'daily (simple version)
More than anything, the daily index charts are most important. The bear flags that have formed on ALL index charts are suggesting a major secondary move lower is due.
First target...sp'1300 - to confirm the bear flag on the daily cycle.
1291..to confirm the bear flag on the 60min cycle....that opens up the 200day MA at 1283.
Right now, my best summation from all of this...'if we break sp'1300'.....then we're going to down to at least sp'1270/50 within 3-7 trading days. It might even be faster if the market gets upset.
*the big money players will likely pile in on the short side once we break 1300 again.
What will be useful in the days ahead, is the speed/style in which we fall. If its just minor moves (and I'd include today's move so far)...then we're likely going to level out around 1270/80. However, if we start falling dow 275pts or more, then maybe a move to sp'1225/00 is viable.
It does look like we have an interesting day ahead.....more later!