1pm update - the baby bear flag is growing

Everything remains on track. The baby bear flag (pink) is the target for late today. I suppose we could cycle higher into Tuesday - although the daily cycle would argue against it. Both the daily and weekly cycles are going to put a constant downward pressure on every bounce/micro-rally we get.


Sp'60min

VIX'60min

A pretty bearish VIX in the immediate 1-3 hour term, not least with it having just moved to negative MACD cycle. There is certainly no sign of a turn back higher.

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From a cycle perspective, we are due to go +cycle on the MACD (blue bar histogram) within the next 2 hour. That would be suggestive of a possible continued mini bounce into early Tuesday. I strongly believe we will soon fail though.

I am still looking to re-short later today, it will be increasingly tempting in the 1375/80 zone.

More later.