The main indexes closed lower, with the sp -15pts @ 1678. The two leaders - Trans/R2K, both closed lower by -1.1%. With the failure to hold the 50day MA of 1679, and the break <sp'1675, the near term downside trend is intensifying. Next primary target are the 1630/20s.
Today was important
We arguably saw the first real downside power on the bearish side in a few months. VIX especially supports this view, with the break into the upper 18s.
With the break under the 50day MA..and key support, the next target are the 1630/20s.
If the political maniacs can't agree on something real soon, this market will continue to increasingly unravel.
More than anything...sp'1627 is the CRITICAL level. If that breaks, then it'll break the two year ramp from sp'1074.
*I am short the indexes from sp'1681, seeking an exit into the Friday close...preferably in the 1650s with VIX 20/21
more later..on the VIX