The main indexes start the week with a pretty significant gap higher, and we've broken back into the 1670s. Incredible underlying strength, although no doubt, a large amount is a result of short-covering. Oil is matching the main market, +1.8%. VIX is only marginally lower.
We have a possible reversal on the VIX, which is only 2% lower.
*I am on standby to launch a very major re-short, but am in NO hurry.
Will re-assess as the morning progresses. I do NOT expect the market to close in the 1670s.
Indeed, it will be VERY difficult to get an hourly close >1675
10.12am..Transports starting to look toppy. Oil daily candle..now black.
Am SHORT.the main indexes.from sp'1672
5, 15min cycles look done. I admit there is NO clear turn/levelling phase on the hourly, but I'm very pleased with my entry level in the low 1670s, thats a good 10pts above what I was seeking last Friday.
Now...I wait... I will very likely hold overrnight..and seek an exit early Wednesday.
Here is Oil, via USO, which is starting to look like a problem for the bulls...
A red close for Oil would be VERY bearish for the broader market.