10am update - cycle target is 1420

Good morning. Futures were surprisingly muted overnight, and the bulls failed to even get a little ramp at the open. The opening declines are important, we've a good break under sp'1440.

Next target is soft support at 1435 - unlikely to hold for more than a few hours, and then the trend/channel of 1420 by the Friday close.


sp'60min

vix'60min

sp'daily5

Summary

A good start for the bears. It'd seem likely we'll get an intra-day bounce, but a red close still seems very likely. The daily cycle offers at least 1 or 2 days further lower.

Thursday will be an important day. Perhaps we can see the VIX briefly spike higher to 17/18.

*I remain short, seeking an exit around 1420 by late Friday.

**As the market becomes more volatilie again, updates will become more frequent.