Today is turning out to be a fiercely bearish day. Besides the nominal price falls, what is most notable..the style of price action/downside power...as especially seen in the VIX, hitting a high of 18.71. Any daily close in the 20s would be a severe warning of trouble
sp'weekly7 - bearish outlook
*The sp'1660s were a target zone, quite a few have been looking for, but I personally, don't see why it would stop there.
As many recognise, regardless of how we close today..the damage HAS BEEN DONE, not least in the VIX. The bigger weekly charts are now breaking down, and if sp'1627 goes...it is OVER.
No doubt the political maniacs on Capitol Hill are getting some phone calls today from annoyed voters concerned about a possible autumnal market crash.
A VERY interesting afternoon is ahead. No doubt there will be one or two micro up waves..but..considering the break <1675.. the bulls look broken.
1.03pm.. clown finance TV headline 'Boehner willing to renegotiate'.
Regardless...a LOT of key technical breaks have occurred today.
1.15pm.. we're seeing a bounce..but with the damage done, default trade is to short the bounces.
Baring a break >1696 - and does anyone think thats viable before the Friday close?, the trends are now starkly downward.