Tuesday, 7 October 2014

10am update - opening weakness

US equities are building upon opening moderate declines, with the sp'500 back below the 100 dma. A daily close in the 1940/35 zone looks very viable, which will bring within range the key August low of 1904. VIX is reflecting the concern, +8% in the upper 16s.




Interesting open, and it certainly brings within range the 1910/00 zone..as early as tomorrow.

There are multiple aspects of support...

1903.. 200 day MA
1904  early Aug low
1917 lower weekly bollinger

On any basis, if we can get to the 1910s or even 1905/00... it'll be time for bears to make a run for it.

The only issue - at least to me.... does the next up wave get stuck around 1970/90....or just keep on pushing higher? Right now... bears still have a chance.

Notable weakness: airlines, DAL & UAL both lower by around -2.3%

VIX is set to go positive on the hourly MACD cycle in 10am hour.... certainly, bears should be looking for VIX 17s by 11am.

10.33am...  another half-crazy bounce.. 11pts... sp'1958.  VIX +4%... 16s....  hmm