2pm update - tricky Tuesday

It remains a very difficult Tuesday so far. There is pretty strong underlying weakness (see daily charts), and we have already got close to taking out the recent low of 1325. Its still possible we take it out near the close. Look to the VIX, any break over 21..and this market would be in serious trouble.

For the moment, we're too low on the smaller cycles to re-short. I'm merely a spectator today. It is a little frustrating missing out on these declines, but I'll catch the next cycle tomorrow.


sp'15min, rainbow

sp'60min, rainbow

Summary

The hourly cycle - its possible we're forming a descending wedge, and will bounce back into the 1345/50 range early tomorrow..before a fierce further move down to 1325.

I'll look to sit the rest of today out, and re-short tomorrow morning, preferably around 1345/50.

*we have AAPL earnings at the close, that would certainly be the excuse for Mr Market to ramp..or to snap right through 1325.

Either way, it will be high risk to hold overnight.