The main indexes all closed broadly higher, but well below their early morning highs. The Transports barely managed a flat close, whilst the R2K still held a rather strong gain of 1.3%, just 3pts shy of 1000. Near term downside target remains sp'1630/25, with VIX 16s.
So, another positive Tuesday close for the bulls, but today was a little different, and the daily charts are certainly looking a little bearish for Wednesday, despite what were net gains.
The 'old leader' - Transports, closing flat was an especially bearish index/sector, and it did indeed flirt with moderate declines for much of the afternoon.
R2K still looks pretty strong, but a move down to the 50day, at the 950 level looks viable at any time.
*I am heavy short the indexes (from sp'1672), looking for an exit in the sp'1630/25 area, but that looks very difficult ahead of the rather large QE @ 10am. Best bear bearish case right now, seems to be a marginally low in the 1632/30 zone.
I realise many are seeking a test of the 1600/1597 area, but considering the big QEs in the next few days, that just doesn't seem viable any more.
a little more later...