A quiet Tuesday, there really isn't much going on. Mostly, it seems its all about the technicals. The smaller cycles are still in the process of resetting after last weeks major ramp. It will usually take 3 or 4 days just to settle things.
First soft support remains 1450, that should fail to hold, and then its just a case of whether we floor at 1440, 30, or 20. I'm guessing no lower than 1430/25.
All the doomer bears looking for a break below the recent cycle low of 1397 seem likely to again be disappointed.
The tranny is again getting slammed. Few seem to have noticed. The problem for the bears, at this rate, the transports will be flooring in about 2-3 days, and then...UP we go again, urghh.
I remain patiently waiting for an exit around 1430..although...1440 would merit an exit, especially late Thursday. With quad-witching opex on Friday, an exit this Thursday, and then re-assess next Monday, seems like a good idea.
VIX is a touch lower, but I'd guess it closes a touch higher.
back at 2pm