10am update - morning weakness

Good morning. Overnight futures showed moderate gains, and despite a minor recovery, we did finally open fractionally lower on most indexes.

VIX is showing no concern, and is only a touch higher.


sp'60min

sp'daily5

Summary

With the break yesterday of 1450, a test of 1430 is a given in my view. I do not expect 1430 to hold.

A fail of 1430 will open up the 1420/00 zone, where I expect the market to floor, no later than this Friday.
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I remain short, looking to exit early Thursday, especially if we get a VIX spike in the 18/19 range.

back at 12pm