11am update - Mr Market is still annoying

Yesterday probably annoyed a lot of traders, not least the late day ramp that would have kicked out a fair few of the bears. Today could be much the same, if we put in a morning low, and crawl back up across the day. The VIX breaking 21 is a warning to those currently long, but how we close today will be even more important.

As noted earlier, a key issue would be if we put in a lower low..and we have now done that across all indexes. Yet, on the MACD cycle we are putting in triple divergence..and it is still suggestive that an up cycle is due.

Clearly, the next key level on the sp' is 1340 (see daily charts)


Sp'60min

Dow'60min

The dow is in a very tight down channel. Only a break above 12850..preferably 12900 would confirm at least a short term up cycle is underway. 12900 would also be above the important hourly 10MA.


VIX'60min

Summary

We appear to be putting in a floor, the VIX looks like its maxed out again. So, the question is..can be close relatively flat..or even green? From a pure cycle perspective....I'd still say..yes.

Time for an early lunch.