Pre-Market Brief

Good morning. Market has been bouncing around a bit, futures has swung back up from sp -12pts to -4. This is somewhat disappointing, but we did at least break a new low. The big issue for today is whether we can get some downside momentum building beyond 11am. That will be difficult as the dip buyers come in around sp'1372/74

Bears need to break <1370 in the opening 30mins, otherwise, we seem likely to make another attempt to challenge resistance @1385/90


sp'15min

sp'60min

Summary

A long and important day ahead. Friday saw a failed bounce, whilst yesterday was semi-shut, so we shouldn't draw any conclusions from the latter.

The VIX remains utterly low, and there is potential for a considerable upward move, but I'm concerned that if the VIX can only rally 8% on a day when the dow was -300pts, it will probably struggle to even be green today..

As things are, with the bounce in the futures, I might exit around 10/11am, and look to re-short in the afternoon again.

It would seem very possible we'll churn between sp'1372-85 for a few days, and that would make a wave'4 bear flag - just like the wave'2 bear flag - which lasted 6 days.

back at 10am.

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UPDATE 9.13am Sp' -8/9pts..we're set to open at a new low, looks like 1365 will be very viable by 10/11am.

My bigger target of sp'1345 looks very viable tomorrow.
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