Tuesday, 10 July 2012

3pm update - ...clear as crystal

A short message to those bull maniacs chasing the open higher, and especially for those day-traders not using good stops...


Bears need a break under the lower channel line of 1330. I suppose a move to 1334 tomorrow might just about qualify as a break, but frankly, I really want to see <1330s to have any confidence of the door opening for much lower levels across the next few weeks.

VIX, daily, rainbow

A green candle on the rainbow chart, bears have something here to be pleased about!


A difficult day for many, even though we're still only talking about a swing of 1.5% or so.

VIX is starting to show a little hint of more interesting things to come, a break into the 20s tomorrow would be the first sign for the bears that 1374 'may' have been the top.

As I kept saying last week though, until we see sp<1305, the bears can not get confident that wave'2 (if that's what it is) is complete.

More after the close :)

ps. I think Mr Wonka would have been buying some of those VIX calls this morning