Sorry I have not been posting much. Busy weekend and I had surgery on my elbow yesterday so I was pretty much out of it all day and night.
The VIX had some wild swings yesterday which at least shows it has life and will cross the 20 dma once the s&p falls below the 875 resistance. Those 2 things should happen in unison.
Today, TA tells us we may go to 914 before this run by the bulls ends and we head back down. The real data (unemployment, housing, credit debt) still shows we are not recovering. Consumer confidence says we are. Consumer confidence, unfortunately, does not pay the bills.
If we go below 900, we are entering that area between 875-900 which is proving so far to be an opportunity to go long for the rebound. Again, until we break 875 and the VIX 20 dma which is around 34 now, this will remain to be a trading bound market. I don't see breaking 925.
China had a big night last night. TBT may have exhausted itself. And REITs continue to be resilient in an absolute abysmal market. Go figure.