With the break of support, the indexes are on the slide..with a primary C wave target of sp'1775/70 by early Thursday. Equity bears should keep in mind the bigger trends..and be mindful of heavy QE-pomo tomorrow. There is noticeable resilience in the momo stocks.
So...to the surprise of some - myself included, we are seeing a C wave.
With the A wave low being 1779, it is reasonably safe to assume a C target of 1775/70.
The very best case for the bears would be a test of the rising 50day MA in the low 1760s, but I find that difficult to envision, considering recent price action.
Frankly, everyone should be delighted with today. Bears are getting a chance to exit...and bulls are getting a chance to buy at somewhat more interesting levels.
VIX update from Mr T.
time for lunch
12.21pm.. weak weak weak. Been a fair few weeks since we saw some consistent downside like this.
The key issue remains....bears have a window...and it closes tomorrow morning, when another truck of benny bux is delivered to the primary dealers.