The opening equity gains have failed to hold, and we're seeing minor weak chop...back to the price action of the past few weeks. However, equity bulls can already tout new historic highs for the two leaders - Trans/R2K. Metals remain weak, Gold -$13, whilst Oil is holding gains of around 1%
Whilst the bears lose themselves in slight hysteria - that the opening gains have been reversed..the underlying fact remains that the two leading indexes did indeed break new historic highs.
Baring a break under last Monday's low of sp'1815, this mornings price action is to be dismissed as post holiday chop.
Notable gains in: TSLA, +3.6%, FB +2.0%, clearly, most of the momo stocks are looking fine.
11.19am.. Well, the lines are very clear...sp'1815, along with Dow 16200. Until those are broken, these down waves are merely places to re-load on the long side. Risk reward, 1% down...2.5/3.5% upside.
VIX +7%, but we're only in the low 13s...and last week showed how even the 14s are difficult to hold over.