Monday 21 May 2012

12pm update - holding the gains..so far

Those bears looking for a Monday collapse sure will be annoyed now. The VIX is getting smashed lower by around 10%, and the early moderate index gains are solidifying to around 0.75/1.0%.

All things considered, so far today is good turn day. Yet we are still very much in the down channel on all indexes. Only with a break above and outside the channel can we even say we've stopped this 13 day down cycle.


Dow'60min



VIX'60min


Summary

Bulls need a close over dow 12550 to confirm an initial break. I don't believe we'll get that today though, but its certainly viable tomorrow morning on an overnight gap - if Asia has follow through to the upside.

*I remain long (underwater from sp'1334), first target remains at least a back test of the old support level of 1340. Considering how deeply low the daily cycles are, we could certainly reach that target later this week.