VIX'60min
Summary
*Chicago PMI, 66 , vs 60 expected. A very strong number, and confirming the recent Q3 GDP data.
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Classic hollow red candle on the VIX... with some black index candles...
It is suggestive of a reversal.... but I've low confidence in almost anything right now (aside from metals/miners).
A retrace of 'some degree' is of course going to happen, but I'm concerned we'll still manage another few days of gains.. before cooling lower.
Anyway... eyes to the VIX... lets see if it can climb across the morning.
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*I'm still looking for a retrace, but right now... at best... 50dma... in the low sp'1970s... in early November.
Considering the price action... and the bigger monthly cycles - now turning bullish, the notion of <1900... seems completely out of range for some months.
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Meanwhile.. there is utter carnage in the precious metals.
Gold -$32, with Silver -3.6%
This is naturally leading to a continued outright crash in the mining stocks. The ETF of GDX -4.5%
GLD, weekly
The 2013 floor is taken out.... next level is 95... equating to spot Gold $1000
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10.10am.. VIX turns positive.... confirming the opening reversal candle.
Now.. don't get me wrong... new high in the Dow... post 2009 high in the Nasdaq.. this sure as hell doesn't mean some major drop is now due...
but a retrace into mid 1900s seems viable..if not 'natural'.
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10.42am.. VIX remains a bit twitchy... but is still suggestive a key reversal is in.
Oil remains notably weak, -1.0%