Friday, 12 December 2014

Pre-Market Brief

Good morning. Futures are moderately lower, sp -13pts, we're set to open at 2022. If equity bears are going to have a chance of 2000 before the FOMC, a weekly close in the 2020/10s will be necessary. VIX looks set for secondary target zone of 22/25.

sp'daily3 - fib retrace



*awaiting PPI and consumer sentiment data

Equity futures have been pretty weak overnight, although certainly nothing too dramatic.. yet.

As has often been the case this year, the market tends to put in a cycle low a week ahead of opex.. on Thurs/Friday. Riley (Mr Topstep) has been a leader in highlighting this.

It is certainly possible we could hit sp'2000 today. A washout... with VIX somewhere in the 22/25 zone... before broader equity strength resumes.

Notable early strength: airlines, UAL +1.8%... as Oil continues to slip, -0.8%.

Weakness, Alcoa (AA,) -0.8%, set to lose the 15s... 200dma in the 14.90s is due to be tested.

Good wishes for Friday... its almost the weekend :)

8.34am Equity futures continue to slip, sp-16pts, 2019.  VIX set to open in the 22s

Oil the $58s

9.21am... Set to open -14pts around 2021.   Oil continues to slip, -1.6%

9.33am... Notably.. VIX only opens +2%.... hmmmm     Thats not good for those in bear land.. need 10% at least.

9.35am... ... and the VIX turns red.

Still... sp'2000 remains the 'natural target'....