R2K, daily
sp'60min
Summary
Personally, I think the weakness is nothing of significance.
Certainly, the VIX is not supporting ANY major drop..barely +2% ...in the low 12s.
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It is almost 11am.. a typical flooring time...and my best guess....
We've filled a gap in the sp'1970 zone... with the R2K testing the 50 day MA.
In theory...we should stabilise here.
The micro 5/15min cycles are offering a turn at almost precisely 11am.
11.04am.. It sure is a borderline situation.. at least for the R2K, but I'd guess it holds the 1150s.
R2K, 15min
Call it a double floor.. but so far.. it is holding. Certainly, VIX does NOT support a major drop.
11.08am.. another spike floor candle... and we're building a secure floor at R2K 1151..with sp'1971.
Equity bears had their 'fun for the day'....time for the latter day recovery.
11.12am... R2K snaps higher....bears on the run. We have a floor.. at the typical turn time of 11am. Never fails to surprise me.
11.14am.. time for a somewhat early lunch... back in 15/20
11.29am... From a pure cyclical perspective... we should rally to at least 2pm....which will get all indexes back to positive.. making for a rather big spike floor on the daily charts.
Equity bears should be mindful of sig' QE on Thursday.. Right now, we look set for the sp'1990s... but hey, that is not too far to go.
Notable weakness: CHK -3%... and I'm not sure why. Oil/gas price falls?
11.41am.. chop chop... near the floor... not exactly surprising.
11.50am.... This sure is a close thing.. R2K 1152.. a mere 2/3pts from breaking a key level.
If R2K 1150 were to fail.. there is a clear 10pts further downside to the 200 day MA at 1140.. that'd be suggestive of the sp'1960/55 zone.