Pre-Market Brief

Good morning. Futures are moderately higher, sp+5pts, we're set to open around 1587. The ECB cut interest rates from 0.75 to 0.5% this morning, and that is giving the markets an excuse to bounce. The metals and Oil are both higher by around 0.5%


sp'60min

vix'60min

Summary

For those who are following the daily index and VIX charts, arguably, today is a good opportunity to exit remaining longs, and/or increase short positions. The weekly charts ARE still suggesting a major wave lower.

Further, as noted in my overnight post, the two leaders - Trans/R2K are now actually rolling over on the hugely important monthly charts.

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*I am heavy short the indexes and Oil, and seek an initial exit late Friday afternoon, preferably with sp'1550s and VIX 17s.


I would think the weekly chart is pretty clear, we're now stuck for four weeks.

sp'weekly5 - fib levels from oct'2011 low

Primary target is the 1480/70s, where the first key fib is. Further, the lower bollinger - still rising, will be in that area by early June.
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Bears should be seeking either an early morning reversal today, or just a drawn out bear flag on the indexes - hourly chart, with a small bull flag on the VIX hourly.

That would set up tomorrow for the real action.
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Video from Oscar...



Interesting two days ahead of us.