Closing Brief

A small, but important victory for the bears. Tuesdays declines were significant, but the bears have managed to not only hold onto the declines, but successfully fought back the early morning rally. However, the VIX failed to confirm the moderate declines, and actually closed lower.


Dow'60min

SP

Trans

Summary

The main indexes closed lower by around 0.2% or so, but the transports suffered badly after NSC (train company) had lousy earnings.

All things considered, the close was fine for the bears, and sets up a gap below 1395/1400 at the Thursday open. If that is the case, a swift move to 1380/75 is possible tomorrow, with the VIX 20/21.

I remain short, and holding into Thursday.

More later