Wednesday 25 March 2015

10am update - opening washout

US equities open fractionally higher.. but with a rather swift swing lower.. now testing the retrace low of sp'2085. All things considered, market should be turning upward from here. Metals are holding minor gains, Gold +$3. Oil is vainly higher by 1.3%.. ahead of the EIA oil report (10.30am)... highly vulnerable to turning red.


sp'60min



VIX'60min


Summary

A pretty interesting open... and despite the early declines.. it doesn't change the original outlook.

There is little (if any) real concern in the market.. and from a purely cyclical perspective.. we should rally upward from these levels.
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Notable weakness:  Discovery (DISCA), -1.4%... great company, but the monthly chart sure ain't so pretty.

Strength: RIG, +4.2%


10.25am.. looks like we have clear floor.. on rising trend.. just a touch above the retrace low of 2085.

VIX is naturally cooling.. already red.. with sp'2093.


10.34am. Oil inventories.. surplus 8.2 million barrels... again... another huge number.

Oil is holding gains of around 1% though... pretty impressive considering the persistant surplus.