12pm update - still on the border

With the Dow and Transports breaking above last Thursdays 'marginally lower high', the bears have a serious problem. Bears appear weak, and if the algo-bots are left alone, we'll be back to the usual late day afternoon melt, where even the sp' will be >1592.


sp'60min

vix'60min

Summary

First downside target is the soft rising resistance of the hourly 10MA, currently @ sp'1584/85.

With the weak USD, precious metals and Oil are getting an extra kick higher.

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*I remain heavy short, but underwater. Not drowning (yet)...but might need scuba gear by the close.


VIX update..from Mr T



time for lunch
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...and there go the 1592 stops..  urghh.  Nothing but air until 1597...and then its the big historic 1600s.

Absolutely lousy start to the week, and we're simply right back to low vol' algo bot melt. 


12.40pm...bears on the run...stops getting hit..and now its just a matter of whether we close above..or below the April'11 high of sp'1597.

Those touting a cycle high in mid May..now look more likely than not.