10am update - huge QE to end the month

The main indexes are holding above what is key support of sp'1642. There appears a lack of bear 'power', and there is the very real threat of a positive close, and gains across the next few weeks. PMI number comes in at a very bullish 58.7...markets snap back higher.


sp'15min

vix'60min

Summary

*I exited my two major short index positions at the open @ sp'1649. I do not intend to launch another index short for at least 6-10 trading days.
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So...I'm out..and now I am wondering what the bulls can do to close the week..and month. With QE of 5-6bn, you'd have to think we'll at least hold the sp'1640s..if not even a moderately higher close.
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I have to say, the PMI of 58 is a real surprise, and if we see another number like that in June, it bodes pretty good for the US into the summer.
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Update 10.30am. It does look like the market has floored..and will see some kind of 6-10 day up cycle into mid June.

I'm not in the mood to go long the indexes, but I am now LONG - Transocean (RIG).

The 200 day should offer good support, and I do think much higher levels are viable across the summer. As ever..one day at a time.

*I will hold Long, via RIG, across the weekend. First target for next week is 52/53.