Lets take a look at all 6 of the main indexes...
IWM (representing Rus'2000)
Nasdaq Comp
Dow
NYSE comp
Sp'daily5
Transports
Summary
First, a note on the transports. After major weakness, the tranny seems to be in a world of its own right now. It could just be resetting itself - whilst the other main indexes play catch up.
The other main indexes are clearly all trending lower, and we are starting to break below some interesting levels
The Sp' closed just fractionally above the important 50 day MA, but it did break it earlier in the day, and many 'out there' seem resigned that the sp' will now trade down to at least sp'1410/00 in the next day or two.
Whilst the indexes have traded lower by around 3% from the QE spike highs, the VIX remains in the historically very low 16s. It may well be the case that the VIX maxes out on Mon/Tuesday in the 18/19 zone. VIX'20 just looks out of range right now, unless the SP' can crack the previous cycle low of sp'1397 - which I don't believe is viable in the current down cycle.
So, I hold short across the weekend, seeking an exit on the next major down day - hopefully Monday!
--
*there will be a detailed weekly cycle update, due later on Saturday.
Goodnight from London