11am update - short term weakness

The main indexes are continuing to see minor price chop, but with a touch of underlying weakness. The sp'500 looks set to slip into the afternoon, first target is 1825/24, but there is almost equal likelihood of a brief move to the fib' zone of 1820/18.  Latter week significant upside is then expected.


sp'60min

VIX, daily3

Summary

*despite the index weakness, it is notable that the VIX is marginally red. I'd look for the VIX in the 12s later this week, but that is not a very bold call.
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Not much to add. There is notable weakness in DRYS and TWTR.

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I just noticed the first update of the year from Oscar



Not surprisingly he is bullish, but hey...so am I.

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..and there is the break...sp'1828.....no reason why we won't just slowly slip into early Tuesday..before the first major QE-pomo of the year kicks in.

No doubt, a lot of bears are getting lost in hysteria..and will get nailed later this week. Oh well....Darwinism..I guess you could say.


11.20am.. sp'1824.. first target hit....and the fib zone of 1820/18...likely by late today/early Tuesday.

A weekly close in the 1850s...very viable.  Bears...beware!


11.29am.. DRYS testing the big $4 threshold..an effective back test..after the break into the low $5s.

Upside to 6/7..seems viable from here..only issue is whether double digits, by late spring, when Mr Market should be around sp'1950/2050.