2pm update - a reversal...indeed!

It does appear we have a classic reversal day, inspired no less than the Bernanke. The main indexes are now moderately lower, lead by the Trans/R2K. VIX looks like a close in the 14s is viable, with the low sp'1660s. Anything in the 1650s would be a real bonus to those shorting today's spike high.


sp'60min

VIX'60min

Summary

Today is playing out rather well.

*I am short IWM, and will consider an exit near the close. I remain VERY focused on the fact that QE is continuing..and there is a mid-sized POMO of 3bn tomorrow morning.
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UPDATE 2.10pm...things are unravelling very well indeed.

*I've placed a tight stop on my IWM index short position, its a huge gain, and I won't see that eroded.

2.17pm...stopped out of IWM short.   My day is done. Am VERY pleased.

Will look for an index re-short, AFTER tomorrows POMO has filtered through, probably sometime after 11am..possibly 2.30pm

2.30pm... daily charts are now looking pretty good for the bears into the Friday close.

The big issue, is just how high can the VIX spike in this retracement? 16s won't be easy.