Tuesday, 21 August 2012

Pre-Market Brief

Good morning. Futures are sp+4pts, we're set to open around 1422. It looks like we'll break the April peak for the SP'500. The transports and Rus'2000 are still notably lagging behind, but are catching up.


VIX, daily


So, we're set to open around the big April peak. Where will it stop?The upper bollinger on the monthly chart would suggest we could be as high as 1450/60 by mid September. The daily chart is a clear wedge, you'd think we'll at least break a few percent lower this week, but so far...no sign of that!

VIX remains in twilight zone territory. Only with a break back over 17 can any up move be taken seriously, and even then, the bears can't get excited until VIX 21+. That seems a long way up right now.

Good wishes for Tuesday