sp'weekly7
Summary
Despite today's index gains, the week has started with a second red candle on the weekly 'rainbow' (Elder Impulse) chart. That is not surprising, since underlying momentum remains broadly negative..and is in fact continuing to swing to the downside.
Underlying MACD (green bar histogram) is now deeply negative, and is arguably getting kinda close to what would be a natural low. The lower weekly bollinger of 1774 remains the primary target.
Looking ahead
We have the CPI, Empire Manu' survey, and housing data. That is a fair bit for the market to churn on across the morning.
*there is minor QE-pomo of around $2.5bn, and that is the only QE of any note this week.
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On the sidelines..overnight
With some late afternoon weakness, I bailed on a day-trade short-index block, but also (somewhat fortuitously) decided to bail on my two core short blocks. Within just 20/30mins, the three blocks I had sold, all declined by 15/20%. As ever, options sure are volatile, and it never fails to surprise me.
sp'15min
I will consider picking up an index short, and VIX long block tomorrow, if we get stuck in the 1840/45 zone, but only if the style of price action remains weak.
Goodnight from London
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A few videos updates...
Gordon T Long, covering a number of macro issues, but esp' China
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Chart update from Walker
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