Tuesday, 8 October 2013

10am update - morning weakness

The main indexes are moderately lower, but the sp' is holding just above the recent key low of 1670. Equity bears really need to break into the 1660s this week to maintain the moderate downside momentum. Metals are turning a touch higher, with Gold +$4.


sp'60min



sp'daily5


Summary

So, a touch of minor weakness, but certainly, there isn't much downside power right now.

Despite the opening equity declines..VIX is already red. However - without sounding permabullish (gods forbid!), VIX probably needs to cool back into the 18s..at least for a few hours.

VIX hourly


The 20 threshold remains a very tough level to break/hold over.
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Notable mover...STX, which is becoming something of a personal favourite in the tech sector.

STX, daily


Keep on spinning! Ohh, and yes..if the main market unravels..STX will likely put in a double top..at least in the short term. Regardless, relative to the rest of the main market, its under valued by at least 50%
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10.20am.. On the hourly index charts..market trying to put in a spike-floor. Bulls need 1678/80. Underlying cycle looks pretty much exhausted on the downside, at least for a few hours.

On the flip side, who wants to be buying in the 1690s?
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Could turn out to be a very quiet day. Next major thing is the FOMC minutes, Wed' 2pm.


10.50am.. micro-down cycle....breaking 1670 !

Next level is 1667/65