We're probably just seeing what is an overdue bounce, the daily trend remains downward, and the target by the Friday close is still sp'1420.
*there is a lot of econ-data both tomorrow and Friday, so there is great potential for some more dynamic market moves. There is a 'small' chance 1420 - the trend from the June low could be broken.
The daily trend remains bearish, and a hit of 1420 tomorrow looks very viable.
I suppose the bears could pray for an overnight gap UNDER 1420, in which case we move into semi-twilight zone territory. A challenge of the important 1397 low would then on offer.
VIX was +10% earlier, its cooled off, but the daily trend still looks good. 18s look viable. I would be very surprised if 20 is hit by the Friday close.
I remain short, seeking an exit of 1420.
Time for lunch