Friday, 11 January 2013

2pm update - daily charts offer some bearish hope

Whilst the indexes remain largely stuck, its important to keep the bigger daily charts in mind. The VIX certainly looks to have floored (at least in the near term) in the 13s, and the SP' sure appears stuck under the mid-Sept' QE high of 1474.




A key level on the daily chart is the giant gap @ 1425. Its not seen on the spx' chart, but more so on the index ETFs, such as the SPY.

The low end of a retracement was indeed in the mid that zone is certainly a natural place for any decline.

Yet..are we really looking at a move from 1472 to 1425 next week, in opex week no less?

Lets be clear, a move to the low 1420s AFTER next week would be a break of the rising channel support, and I can't see that happening.

So, if we are going to get a retracement to 1440/25..then it'll be next week, rather than the tail end of the month.

As ever..its just a thought..from someone who is still very much 'in love with the downside.'