Closing Brief - down..up...down

A real mixed day. Early morning losses of 0.5% quickly reversed to minor gains of 0.25%...but closing down around 1%. With the VIX closing up almost 10%, this was certainly a victory for those bears who believe we've already maxed out wave'2.

A break of 1306, and then 1300 would violate the bull flags on the hourly cycles - which arguably still form wave'b.

The closing hourly charts...


IWM

Dow

Sp

Summary

Market picked up just a touch in the closing few minutes, but still, thats mere noise, bears won Wednesday.

I'm still looking to short from higher levels though, we are still dealing with bull flags, and they are likely to offer a few days of upside. That of course now seems likely to take us into the middle of next week - when the Fed might extend QE-twist.

*there is also the issue that we have a giant inverse H/S formation on the hourly charts, which would be bullish for next week.

More across the evening...