Support Zones

I’m looking for support zones here as I don’t really trust this sell off. I’ll get to the why later but suffice to say that momentum on the way down has been rather pitiful which strongly points toward the scenario I proposed two weeks back: A pre-bear-slaughtering-season-shake-out followed by a Santa Rally pinning equities near positive for the year. After that it’s every man for himself – I expect a huge shake out for 2016.

I mentioned momentum on the way down and this is what I was talking about. The sheer fact that we enjoyed such a smashing swing trading session yesterday is a bit out of character. This is the spot where gravity should make itself felt in order to produce sufficient pain to force a sell off. It’s possible that we’re simply taking our time here but it needs to happen soon, meaning today or tomorrow.

The long term panel shows me potential support zones unchanged near 2054, 2035, and 2008. Let’s also not forget the volume hole on the daily:

Here we got a little chasm of participation between about 2035 and 2055. Which lines up very well with my LT context. It also suggests that should we actually drop through 2055 we may have good odds at getting to 2035.

Now this is something I saw by accident today and which supports my view that this sell off is engineered to clear out the ranks a bit. The VIF/VIN ratio is actually climbing higher, which is something I have rarely seen. Should be dropping right now, so this is worth noting.

Update on cable – it’s finally getting out of the gate and I’m moving stop to break/even.

Bonds – we have been waiting for this one for days now and things are getting pretty coiled up here. Just don’t complain that I didn’t warn you.

But my favorite bond symbol for today I’ll keep for my intrepid subs, plus plenty of other victims to be slayed:

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Cheers,