11am update - micro down cycle

The main indexes have peaked at sp'1696, and we're seeing a very minor down cycle. Whether we level out at 1690, 85..or even a bit lower, really doesn't seem important. The market will likely see renewed strength in the late afternoon, with the VIX melting lower into the weekend.


sp'60min

vix'60min

Summary

We have seen a very strong swing from a Wed' low of 1646..to this mornings 1696. A truly stupid 50pt ramp across just 14 trading hours.

Even if the next wave higher is only half as powerful..that should get the sp'1720s next week, at which point, you just know how bullish the cheerleaders will be on clown finance TV.
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*Oil is starting to recover from the sig' opening gap lower of almost 2%. A positive close would be a real bonus to yours truly. Regardless, I'll hold USO long into next week.


11.36am..well, we're already back to 1696, and the 1700s look likely today.

For the bears..a terrible..and cruel end to the week, after what had seemed the first sign of an initial break. But hey...we know who to blame..and hey...its not like Boehner not done this before.

*Oil is choppy, but its holding the opening low..and it looks prone to good upside on the hourly/daily charts for next week.