sp'weekly
sp'weekly2, rainbow
sp'daily5a - H/S formation idea
Summary
So...today opened as expected - with a gap higher, but it sure didn't end with the weakness I was seeking. Indeed, the close was pretty bullish, and with the VIX back in the 13s, the bulls must be pretty pleased with themselves after Mondays surprise routing.
Yet, despite today's ramp higher, the weekly charts ARE still rolling lower. Underlying MACD (blue/green bar histograms) are ticking lower, and we're due to go negative cycle within the next 3-8 trading days.
Looking ahead
The only major things tomorrow are further earnings reports, and there the Fed 'beige book' at 2pm. Of course the market could use that as a further excuse to ramp, if a weak outlook means the QE will continue.
Tomorrow will be important from a chartist perspective. We must not trade over sp'1580, or it will really mess up the micro-count. If however we can break into the 1550s by late tomorrow, that would offer the opportunity for a further brief gap lower on Thursday into the 1540s - where I am still guessing we'll then see a push back upward..into Friday opex.
*I remain short from early Tuesday, and seeking an exit in the sp'1540s, with VIX 16s.
Goodnight from London