Closing Brief

A superb end to the day for the bears, a reversal day no less! Even the VIX showed some support, and the daily VIX cycle is highly suggestive of further index declines for a few more days.

The only issue is how low bears can push in this cycle, right now, a break under 1400 still seems out of reach.


The closing hour cycle charts...

IWM

Sp

Trans

Summary

Finally...some action, its about damn time!

The big 1440 will surely be tested in AH trading, and there is a fairly good chance we'll gap under that at the Wednesday open. A break of 1440 opens up the very important 1420 level.

The VIX closing +10% certainly confirms that Mr Market is finally starting to wake up from its semi-coma.

I remain short, seeking an exit in the 1430/20 zone, later this week.
-
More later