Friday, 28 December 2012

12pm update – edgy Friday

The main market is holding just above dow 13k, and sp'1410. The VIX is holding the 20s for the second day..and that in itself is good confirmation of yesterdays break through.


Sp'daily5



vix'daily


Summary

All things considered, bears should be content with the action so far today. Certainly, its nothing particularly interesting, but we sure ain't trading in the 1420s.

I'm admittedly concerned about some delusional hyper-ramp late in the day..or early Monday.

Yet, the weekly/monthly charts are clear, and so I'll stick with them.

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A provisional short exit at the first VIX spike in the 24/26 range seems reasonable, that would probably equate to sp'1380/70.

The sp'weekly rainbow chart is particularly bearish...


If we can close the week with a red candle, that'd be a major warning of trouble for next week. First target would be the November low of 1343.

There remains nothing but empty air from 1343 down to 1266.