The main indexes continued to show distinct weakness, with the VIX closing up a significant 8-9%. The bigger weekly cycles are primed for a collapse wave into the low sp'1200s by mid-January.
*this will be brief, since I just don't have a decent connection to post much.
So, the third consecutive red close for the Sp. This is good, and is a good sign that the original bearish outlook could yet all pan out broadly as expected.
Primary downside target remains somewhere in the 'low sp'1200s', primary target would be around 1225..by mid-January.
Eyes on the weekly charts
Bears should recognise that the VIX is about to go positive cycle for the first time since July 2011. Most will remember what came next. A VIX surge from the teens to the mid 40s, that took just a few weeks.
I remain somewhat annoyed that I'm largely without a connection. I'll be back tomorrow...but perhaps not until the Thursday close. Urghh.
Goodnight from London