Yet the VIX still closed 4% lower, and is not supporting what remains a broad 4 day down cycle.
IWM
Dow
Sp'daily5
Trans
Summary
First, we have a black doom candle for the Rus'2000 (see IWM) small cap. Thats a very clear warning that the rally failed, and is suggestive of a red Friday.
The other indexes are largely the same, flat/fractional declines. Yet, those are some pretty impressive spikes on the daily candle, a good sign of weakness, and that traders were selling into strength.
A close under the 50 day MA ?
Doomer bears should be seeking a Friday close where the sp' closes under the 50 MA @ 1427. If that is the case tomorrow, I will very likely hold across the weekend, with a revised exit target of 1410/00 for Monday.
A key thing to watch tomorrow will be the VIX, bears must see a VIX in the 16s at least, preferably 17.25/50.
*the weekly index cycles ARE rolling over, so..there is some underlying pressure to the downside.
A little more later