I’m going to back up and look at a daily chart of S&P 500 futures. S&P 500 futures have been trapped in a consolidation for almost two weeks now with the market retesting the support trend line at the low today. Certainly a negative that 3882.75 was a ceiling again today. My preferred scenario has been to shake a few bears off with a bounce to at least 3937.75 if not the 50% at 3984.75 or even the 62% retrace at 3032.00 before turning lower.
As I type, the market is getting a lift from dovish comments from the Fed’s Bullard, so perhaps the trap door doesn’t open today but give the bears credit for a good try. Recovering 3846.00 is a good first step.
This is another chart I’ve been watching with interest, an ETN of short-term VIX futures, VXX. What is of interest is the projected cycle low on January 10th. Tricky as we are already probably in a possible turn window which makes this situation in the equity indices difficult. I have been looking for an equity pop to correspond to this cycle low but running out of time.
Pretty happy with how crude is acting today as it indeed dropped to test 72.50 and then rebounded with some force. Now should try to bounce to at least 75.85 in a wave [II].
Thanks for the Midday update for (SPX+Crude oi) !
Appreciate your lightening about them.