12pm update - empty air to the low 1900s

With the recent low of sp'1993 taken out (new intra low sp'1989), there is empty air to the minor gap around 1950, with first soft support in the 1920/00 zone. VIX is naturally screaming upward, +22% in the 22s. Regardless of any bounces.. it would seem the market is headed broadly lower.


sp'daily5

VIX'weekly

Summary

*note the upper bollinger on the VIX weekly cycle, the 30 threshold looks a given, if sp'1920s
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Getting rather interesting, isn't it?

Not only is this now the ugliest start to a market year since the 1930s, but the technical breaks should be clear to almost anyone.

As noted at the weekend, unless the bulls can re-take the monthly 10MA, with a Jan' close >2060 or so, the default trade is now to the short side.

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VIX update from Mr T.



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time for lunch :)