What is critical both tomorrow and early next week, are no daily closes over sp'1380. It is a little disturbing to realise we are again a mere 4% from the April peak.
sp' weekly, 2yr
Summary
Monday's morning gap lower of dow -239pts (with VIX +26%) now feels like a distant memory. These sort of crazy gaps higher on shear crazy 'excuses' are clearly going to happen again and again in the months and indeed years ahead. Even now though, after so many such 'stupid' days, its still pretty surprising and disturbing to see it happen.
Can we at least close Friday lower? Clearly the smaller cycles would allow for some kind of fall tomorrow, but today's move higher was pretty strong. I'd be more inclined to guess that Friday will close flat.
Lets see if the US Q2 GDP and consumer sentiment data can at least produce a flat index close, or preferably a weekly close a touch under sp'1350.
Goodnight from an overly warm London