The week closed badly
for Mr Market. There was distinct weakness across the day, and unlike
Thursday, no ramp..and instead...a mini-cascade, almost taking out
the big sp'1400 level. The VIX strongly confirmed the significant index declines.
*as at 5pm EST, in AH
action, the ES indicates the sp -11pts from the closing level, we are trading just a touch
over the critical 200 day MA @ sp'1390.
–
Lets take a look at
those daily charts...
IWM, daily
Dow
Sp'daily5
Trans
Summary
So...we closed in what
some are calling a bloodbath. Well, I'd not use that word quite
yet..I'll save it for Monday/early 2013.
–
The close of sp'1402
was a bonus, and we're just 12pts away from breaking the big 200 day
MA @ sp'1390. The loss of dow 13k was certainly decisive, and there
is now open air of a further 5-6% decline next week.
What about Monday?
As I type, the ES is
still -8pts from the closing level, so the bears are already seeing
some further significant damage in the Friday AH session.
All things considered,
the week closed very well, and the bears have a massive opportunity
next week to test the November low of sp'1343. Even if we see a
strong bounce off that level, I don't believe it will hold on a
multi-week basis.
Primary downside target
remains sp'1225, with VIX 35/45....by mid-January.
A little more later....