10am update - minor weakness

Equities open lower, but there really isn't much downside power, and the hourly cycles are prone to another wave higher. R2K remains particularly weak, but is holding the Monday low of 1121. VIX is higher, but is highly vulnerable to turning red later today.


sp'60min

VIX'daily3

Summary

*opening black candle on the VIX hourly chart..bodes badly for the equity bears.
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*factory orders: +0.7%..a little better than expected.
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With QE this morning - if only $1.5/2.0bn, bears face the usual problems.

All things considered, there is only small chance of downside, and with the weekly charts offering sp'1930/35 in the immediate term..equity bears need to be careful.
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*I remain content to sit on the sidelines. Call it 'weak' if you want, but I'm trying to wait for a better setup...whether long..or short.

Notable weakness, coal miners, BTU -2.1%


10.26am.. back from the shops...and I see sp'1923....bears can't even manage a minor drop for more than 15/30mins.

VIX on the edge of turning red...and its not even 11am.