12pm update - bearish capitulation ahead of the Fed

US equity indexes continue to grind slowly higher, with a new cycle high of sp'1974. VIX remains in melt mode, -4% in the low 15s. The 14s look likely (if briefly) before a floor is in. Metals are increasingly weak, with Gold +$1.. a red close looks probable.


sp'60min

vix'daily3

Summary

So, we're in the resistance zone, and with the Fed tomorrow, there remains the chance of a reversal.
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What is still rattling in my mind is what I saw this morning on CNBC. The Liesman effectively calling for QE4 in the relatively near term. I have little more than contempt for any of the cheerleaders, and it was highly indicative of just how upset they have been by the recent down wave to the low sp'1800s.

Lets be clear... the mainstream can NOT cope with a multi-week fall of more than 3-4%. 

If by some miracle we're even just testing the recent low in November, you can bet the mainstream will be screaming at the Fed for more 'market support'... which does seem likely.. no later than next spring.
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Notable strength: TSLA +6.7%, I've no idea why, I'd guess its just the momo chasers piling in once again.

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VIX update from Mr T.


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time for lunch