Yesterday saw bearish engulfing candles for most indexes. This morning opened moderately higher, climbing to 2761, but then we saw another significant reversal to settle net lower.Today's failed gains fully confirm yesterday's reversal. We're arguably seeing the first proper retrace from the initial wave of 2532>2789. The 38% fib' retrace of 2691 looks highly probable.
With equities unravelling into the late afternoon, the VIX surged from a morning low of 17.39 to 20.44, and settling in the upper 19s. Further upside to the 22/25 zone looks probable.
The February settlement: sp'monthly
Yes, the sp' saw a very significant net monthly decline of -110pts (3.9%) to 2713, but this was far above the intra month low of 2532. Note the hyper spike from around the key 10MA. M/t upside to the 2950/3047 zone still looks due, where the market will be highly inclined to become seriously stuck.
|A rare snow day in the London metropolis|
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Goodnight from London
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