Its turning into a battle this morning. Despite the arguably 'great' PMI number, the bulls can't ramp this market more than 0.2%. Metals are taking the hammer, with Mr $ seeing yet further weakness. The VIX is red, but its managing to hold the 14s.
Look at the MACD (blue bar histogram) on the sp' daily, we're set to go negative cycle tomorrow. So..those bears seeking some more dynamic action, prime time will be tomorrow.
Frankly, if we dont see a 1% fall tomorrow, with VIX in the 15s, I'm going to be very concerned that the retracement - as highly suggested by the Trans/R2K declines yesterday, is just another tease. We'll soon find out.
I remain on the short side, with a major VIX long position from the low 12s. Seeking 16s.
GLD looks set to break the 158 low early next week.
That'll give the gold-bugs a good scare!