Wednesday, 30 May 2012

1pm update - all aboard the bear train

Whilst lightning bolts start to rain down outside (a very appropriate mood setter), I've a screen of red. After yesterdays latest nonsense, once again 'reality' returns to our favourite casino. How long will the break from the delusion that 'everything is fine' last? A day, a week..or even into late June?

The primary monthly cycle target remains sp'1100. In this new wave lower, a move to at least 1280..possibly 1225/00 seems viable - if the market finally gets spooked, so look to the VIX.




VIX is confirming everything very well, a close in the 24s would easily suffice..and it opens up a jump to the high 20s by the Friday close.

*look to the Sp' breaking 1305 (lower channel of the daily bear flag), and then a fast move under confirm both the daily and hourly cycle flags.
Much more later...those daily charts will be paramount to focus on after the close.