The recent 'everything is gonna be great for the rest of 2012' hysteria on the various clown channels is noticeably fading these past few days. Similarly, Mr Market sure is looking weak from the daily cycle perspective. I'm not expecting much this afternoon, other than continued moderate weakness. However, Friday could be a really exciting and dynamic trading day.
Lets assume we close somewhere between 1390/1400 - which is appears highly probable. A good 1.5% lower tomorrow will get us to the lower channel of what is still a giant bear flag on the 60min cycle. A bounce there would be normal...and then a further wave lower either late Friday or sometime Monday.
One important factor to keep in mind - the bears MUST see the VIX start to show some +10% daily moves soon, if some of the bearish index targets - sp'1340/1300 are to have any reasonable chance of being hit.
Sp'60min
More later!
Lets assume we close somewhere between 1390/1400 - which is appears highly probable. A good 1.5% lower tomorrow will get us to the lower channel of what is still a giant bear flag on the 60min cycle. A bounce there would be normal...and then a further wave lower either late Friday or sometime Monday.
One important factor to keep in mind - the bears MUST see the VIX start to show some +10% daily moves soon, if some of the bearish index targets - sp'1340/1300 are to have any reasonable chance of being hit.
Sp'60min
More later!
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