1pm update - awaiting a turn

US indexes are still holding moderate gains, with sp'1750s, and a VIX in the mid 18s. Considering the strong downside momentum on the daily/weekly index cycles, a turn can't be too far off. The 'magical' time of 2.30pm will offer equity bears the first real opportunity of renewed downside.


sp'daily5

vix'daily3

Summary

*ignoring the smaller hourly cycles this hour...keep in mind the daily charts.

Even if the indexes could hold the Monday low of sp'1739..it'll take another 3-4 days for the underlying downside momentum to really begin to level out. The notion of going long at these levels..whilst downside momentum is so strong....crazy!
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We have an interesting afternoon ahead...it kinda feels like last Friday..which itself was a good example of how things often unravel after 2.30pm.

For once...bulls..beware!


1.20pm... VIX offering an initial turn...but nothing conclusive yet. We'll probably see things get entertaining after 2.30pm.

Regardless, anyone who exited shorts late yesterday, are getting a very reasonable re-entry on the short side.

Notable strength - UGAZ +25% !