Significant weakness across the morning has given way to more subdued sideways trading, with the VIX just 4% higher. Its a somewhat confusing near term outlook. Prime downside zone remains 1630/25, but there is very viable upside to the low 1680s by the Friday close.
A real tricky Wednesday.
Bulls must hold 1640..or things will unravel into the close, at which point the sp' could be -30/35pts..which would certainly make for one major daily decline.
Bears on the other side, need to at least close lower, but that looks increasingly difficult, and the VIX sure looks stuck under the earlier highs.
I'm more than content to sit back, and watch.
UPDATE 1.25pm Looks like market will hold the 1640s.
Here is a new idea....
If we get stuck in the 1655/ low 60s tomorrow for much of the day, it'd be an interesting re-short level. Although there is a huge 5-6bn QE on Friday at 10am.
Will keep this scenario in mind for rest of the week.
1.47pm...here comes the ramp. Bears had ALL morning to exit..we're now 11pts above the low