Mr Market is surprisingly still weak. It looks like the dip buyers are going to be absent until at least the sp'1490/80 zone. Metals are seeing a bounce, but its on shaky ground, not least with the dollar again higher. VIX looks like it can close in the low 16s, opening up a full gap fill to 18.
I'm guessing the market will close lower, but a sub 1500 close won't be easy.
*I'm still holding a VIX call block - which is resurrecting itself back from the dead, I'll look to drop around sp'1490..whenever that might occur, regardless of actual VIX level.
All things considered, I just can't take these declines seriously.
Nothing has changed.
The POMO is still going. The HFT algo-bots are still plugged in, and the cheer leaders on clown channel are still generally bullish. CNBC even wheeled on Larry Kudlow this morning to highlight that the sequestration issue is largely irrelevant..and I have to agree with him.
Best case for the close...VIX in the low 16s...sp'1495.
SLV probably needs a few more days in this kinda range before any hope of multi-day upside.