12pm update - down trend broken

US equities have broken the short term down trend, with a key floor of sp'1874. Equity bulls should be content with any daily close in the 1885/95 zone, anything above 1900 would merely be a bonus. VIX is naturally imploding, -12% in the 21s.


sp'60min

vix'daily3

Summary

Suffice to say...  we're now headed broadly higher... but a bounce it will be.. resulting in a critical lower high in late Oct/early November.

Lets see how excitable the mainstream will be when we're back in the 1925/50 zone. No doubt they'll soon be looking to new highs, the sp'2100s....

... oh how pleasing it will be to see the faces on clown finance TV, when this all unravels in the next wave.

--
VIX update from Mr P.


--
Time for lunch........ back at 2pm (I'm really struggling today.. sickly)

11am update - battling to break the down trend

US equities sure are shaky this morning, with opening gains failing, but holding the Monday low of sp'1874. A renewed push higher is underway, with the hourly 10MA @ 1895, as key resistance. VIX continues to cool, -7% in the 22s.


sp'60min

VIX'60min

Summary

Suffice to say, we're close to confirming a floor.

Just need a few trading hours above the hourly 10MA, which would be a clear break of the down trend.
--

Notable strength in the R2K, +1.6%

Airlines are strong, DAL/UAL, both higher by around 5%


11.38am Market breaking the down trend... with. VIX -10%, 21s

11.42am.. Down trend BROKEN.

We have a floor of sp'1874... and we're now day'1 of a 2-3 week bounce.

10am update - opening gains

US equities open moderately higher, and the bulls are making a play to break back above the important hourly 10MA - currently around the big 1900 threshold. VIX is cooling, -4% in the 23s. Oil remains weak, -0.4%.


sp'60min

vix'60min

Summary

So... opening gains, but just getting back above sp'1900 is going to be difficult, and will likely take 2-3 days.

As many recognise, with opex this Friday, Mr Market would probably like to destroy as many of those index puts as possible.

Best guess... a 2-3 week bounce is due... 1950/60... very viable, which would likely equate to VIX 16/14 zone. From there...the big short-side money is made in November.
--

Notable weakness: DRYS -2% in the $1.40s.. Mr Market sure doesn't like the cancellation of the debt auction.


10.01am... gains fading very quickly... however the R2K is holding gains of 0.7%... bodes for another renewed push higher in the broader market as the day continues.


10.07am.. Market trying to build a floor around 1880.

*Armstrong posted a LOT of good articles in the past day... go read >>>>>>>>>>>>