The market looks conclusively floored for today, in what was probably a B wave, and we're now in a C wave. Immediate target is the 50% fib, in the 1660/62 area. Downside target for next Tue/early Wed' remains unchanged at 1630/25. Oil recovering, whilst USD remains weak.
There is now high confidence that we are in a C wave higher..into the close.
The low Sp'1660s look viable, and no doubt many bears will be dismayed into the weekend.
However, The hourly and daily charts would still be suggestive of one further wave lower on Tuesday..perhaps into the Wednesday.open.
Most important of all though, bears need to keep in mind, BIG QE next Wed/Friday.
I will consider a major re-short near the close...if sp'1660s.
VIX update.. from Mr T
time for lunch!
UPDATE 12.33pm. VIX rolling over on the hourly..target is 13.70/50 late today/early Tuesday.
I'd be looking for another spike to 16s by late Tue/early Wed'