A classic reversal day, and the first significant down day in over four weeks. Most indexes declined between 0.5-1.0%, with the Trans and R2K both falling 1.6%. Daily charts are warning of downside into the Memorial day holiday weekend. VIX confirmed today's equity reversal.
*first downside target met. I'd have to guess the sp'1620s now look very viable.
Well, finally bears have something to be pleased about, although sp'1650s are obviously nothing to get too excited about.
A reversal day is a powerful and important day to recognise. Arguably, we now have a confirmed turn day, and now the issue is how many down days will follow. I'd have to guess it will be safe for the bears until the Friday close, but next week is another matter entirely.
There is huge QE to end May, and that will very likely at least keep the market from falling under the 1600 level.
*I am on the sidelines overnight, but will seek an index re-short on Thursday. With QE of 3bn, there is very significant risk of an 1% morning gap/ramp, but considering today's reversal, I'd have to guess it will similarly fail.
the usual bits and pieces across the evening