1pm update - waiting for a turn

Market still crawling higher this hour. We're now close to the border of what is probably a large H/S formation. Bulls should be seeking a breakout >1340. Bears will need to get back into the low 1310s..and break 1300 to confirm much lower levels in July.

Its not a bad place for new positions to be taken, whether bullish or bearish. The stop levels are indeed pretty clear.


sp'60min H/S formation

sp, daily, 4mth

Summary

The daily index chart does look a little scary right now, but the daily 10MA at 1335 is pretty strong resistance, a close above that won't be easy for the bulls.

VIX continuing to hold up well. The option writers clearly aren't so bullish about the near term as the indexes might suggest.

I remain short...and will hold overnight.
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Recommended afternoon reading...

'no risk of (Australian) housing bust'

Mish again highlighting a key issue...Australia (and Canada in my view too) both have crazy housing problems right now. Both look set for major down cycles.