If there is one chart to watch this summer...it remains the VEU chart.With the main markets suffering renewed losses, the VEU fell 2% today.
We are getting real close to triggering the first warning. Those bulls looking for new highs later in the year...are going to be real dismayed....real soon.
First target remains a break under the recent low of 37.5 - equivalent to sp'1266. That is viable as early as this Friday - although somewhat unlikely.
I do expect the critical 35.0 line in the sand to be tested by mid-July..and to fail.
At that point..no more warnings...merely..a road trip to hell.
Goodnight from London