Thursday 10 July 2014

10am update - VIX warning for the equity bears

Equities open sharply lower, but the opening VIX hourly candle - a black-fail (as I like to call them), is warning that VIX is already maxed out..in which case.. equities are also close to flooring. Metals are holding sig' gains, Gold +$12.


VIX'60min


sp'60min


Summary

However you want to label the hourly chart.. an 'ABC' - with C, this mornings opening drop - along with yesterdays bear flag.... I don't think we go much lower.

Certainly, there are multiple aspects of support in the 1950/35 zone.
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What is absolutely clear, ALL opening black-fail candles on the VIX are to be treated with a lot of respect.

Bears..........beware!
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10.01am... we close the opening 30mins indeed with a black-fail candle....and MACD cycle will be levelling out within 1-3 hours.

There can be no excuse for ANY whining tomorrow/early next week, when the market is on the rise.

The VIX is very probably giving a 'get outta there' signal.

Similarly.. for the dip buyers...now is prime time.

Notable strength: Airlines, UAL +6.6%.... woah


10.10am... VIX continues to cool... and indexes are levelling out.

Airlines have turned on the nuclear engines... UAL +7.1%


10.25am...  VIX really getting the smack down now... back in the 12.50s.... and equities well off the low.

Equity bears likely had their chance to exit.

A few hours more to stabilise the market.. and then up.. into the weekend.. and across next week.