3pm update - market action confirming wave'2

The intra-day action in the last hour or so is very much the style of a first wave higher. Doubtless many bears have been shorting today at various levels..and they've all got burnt. The smart ones will have been quickly stopped out, whilst the amateurs will be holding all the way into the 1350s or so - not so good.


sp'60min

vix'60min

Summary

However this closing hour ends, i'm now assuming wave'1 is done with. The daily cycle on all indexes is confirming this view, and there are a few other little signs also (bullish engulfing candles) all over the place too.

VIX confirms the index move higher, bulls likely to control the next 5-7 trading days. Yes, the VIX is on support, but the daily cycle is suggesting further falls.

*baring the Bernanke coming out  tomorrow proclaiming 'the end of the world is nigh', this market will probably deal with whatever he says with some renewed hope of QE.

More after the close