12pm update - melting into the afternoon

Despite some arguably weak econ-data this morning, the market is holding onto gains, and it looks like it might even be able to close in the high 1560s. A few hours of algo-bot melt would no doubt trigger a lot of short-stops, and once again annoy a great many bears.


sp'daily5

VIX' daily3

Summary

There is easy upside into the 1570s in the immediate term.

There is seemingly no point shorting the indexes this week, not least when there is a rather large POMO this Thursday.

Even worse, even if we do open lower on Thursday (bad GDP, PMI data?), we'll likely see a significant rebound. It would seem its a case of 'come back next week' for those in bear land.
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Oil is approaching the old broken neckline...

I'd be surprised if USO can put in a few daily closes >34.50. A few days trading sideways..and Oil will make for a good short next week, especially if equities are maxed out in the sp'1570s.


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