US equities have filled the opening gap, with the sp' quickly rebounding from 1955 to 1967... a daily close in the 1970s remains probable. VIX remains subdued in the 21s... sub 20s look a given by midweek. Gold remains weak, -$6, whilst Oil is powerfully higher, +3.0% in the $46s.... seemingly headed for 49/50.
sp'15min
USO, daily2
Summary
Little to add.
I realise many will be confused by today, but it seems the market is just trying to wash out both sides... as we battle back toward the 50dma... currently @ 2036.
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*I remain tempted by Oil.. but really, I'm not in the mood to complicate things.
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US equities are continuing to cool from the earlier high of sp'1979.. now u/c @ 1958. VIX remains very subdued in the 22s. Despite the USD +1.0% in the DXY 95.70s, Oil is showing some distinct strength, +2.7% in the $45s.
sp'15min
USO'15min
Summary
The strength in Oil is a major problem for those equity bears who think we can fall from here. If Oil can rally into the next EIA report this Wed' morning, the broader market will likely be able to battle upward.
No doubt some are getting riled at this post 11am wave lower.. but really.. market is likely just solidifying a floor
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*I'm getting a little frustrated on the sidelines... I suppose I could just about stomach picking up a small USO-long this afternoon. Hmm. Oh well, I can't short it.
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US equities have naturally seen a morning peak of sp'1979, around the typical turn of 11am. All things considered, a daily close in the 1970s remains more probable than not... along with VIX 20s. With the USD +1.1% in the DXY 95.90s, metals are under pressure, Gold -$7... but Oil is very resilient, +2.4%
sp'15min
USO, daily2
Summary
*I am short term bullish Oil.... with USO to the low $16s... but I won't get involved on the long side for the remainder of this cycle.
Issue... if Oil can rally into Wed'.. with another net draw in the EIA report.. then it'll certainly help the broader market push into the sp'2000s.
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Little to add
Unless we take out the Friday low, I've ZERO inclination to get involved until the sp'2000s.
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VIX update from Mr T.
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time for tea.. on what is a rather horrible grey & rainy day in London.
