12pm update - morning weakness

For the fourth day in a row, the opening moderate gains have failed to hold, and the indexes have all switched to moderately lower. The tech' is weakest, not least due to AAPL which earlier briefly hit the 200 day MA @ 587. VIX is starting to show its underlying strength again.


sp'daily5

vix'daily5

Summary

The market is looking weak. The daily chart is now sporting a pretty clear bear flag, and if we get a daily close <1397 tomorrow - or Friday, I will be targeting a fast move to the low 1300s early next week.

The VIX is starting to confirm the bull flag I was suggesting, first target remains 20/21 - which could be hit as early as tomorrow, and certainly by Friday.

Bears should seek at least a marginally lower index close, with VIX at least in the low 18s.

back at 2pm