Closing Brief

After a somewhat scary opening for the bulls, we saw another strong recovery with a few indexes even going green in the afternoon. Despite the renewed weakness in the closing 90 minutes, the market appears like it is putting in at least a short term 5-7 trading day floor of sp'1343 - forming the RS, as part of the H/S formation I have been outlining.


Sp'60min - H/S formation theory

Dow'60min

IWM'60min

VIX'60min

Summary

The closing 10 minutes were certainly weak, and clearly many of the 'rats' were not happy to hold overnight. That leaves us with the issue in that today was indeed a further lower low, and now we have to wonder if teh big 1340 support level can be taken out in this current down cycle.

Considering the 60min index cycles - with triple MACD divergence - that was confirmed today, I'd guess we will hold above the sp'1343 low from this morning.

More later, dealing with those daily cycles