Thursday, 12 July 2012

11am update - bulls being routed

With the break of sp'1330 the bulls are being routed. The VIX is showing a good breakout into the mid 19s. The bigger weekly and monthly cycles are now all starting to sync up for a major move lower.



sp, daily5


Its viable we get a little bounce across a few hours, so there is no hurry to chase this market lower at this moment. A bounce to 1335 would be a fair level to re-short later.

With the break of 1330, the fear of further highs is almost fully gone. Once we break the recent 1310/05 zone, then its arguably 'free money' down to 1266, probably 1225/00.