This opening move lower is very welcome, and is almost removing what was arguably a small chance for one more final wave higher into the 1390s.
sp'60min
sp'daily5
Summary
What is VERY exciting is that we are set to break the lower channel on the daily cycle again If we can indeed open in the 1340s, that is good confirmed follow through to the downside.
*VIX will probably open up around 10%, maybe as high as the low 18s. That still remains a bizarrely low number, and as ever..we'd get an intra-day pullback - probably to the hourly 10MA.in the low 17s.
Whats my plan?
Well, I plan to exit early this morning, and look for a re-short later in the day. Both smaller 15/60min cycles are very low already, and there remains a high probability of an intra-day bounce, which could be as much as 10pts on the SP.
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Its an important week for the bears, we really need sp'1310/00 by the end of July to keep the weekly/monthly cycles still in a bearish trend/formation. So, with 7 trading days left of July..lets see what Mr Market can do today.
Good wishes for the trading week ahead!
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UPDATE 8.41am
Dow -200, sp-20pts...so now the open is set for 1342 - which is close to the lower channel on the hourly chart. VIX 'should' open in the mid 18s
I'm still looking for an early exit, but would look to re-short a little later in the day.
Primary daily trend is now most definately down.