Whipsaw Central

It’s been a tough start of the year thus far. Since the bell rang in the first candle of 2014 equities have been tearing participants into pieces. For your edification I am showing you a snapshot of the Zero indicator covering the spoos:

Now that’s not a pretty sight – on the hourly chart we are running in circles but are not getting anywhere fast. As you can see the signal is kind of all over the place – not a real theme and we see quick spikes down which are then bought back. Nasty nasty tape – especially when compared with the candles over on the 2013 side. And that was holiday tape, mind you! Still a lot more orderly and it’s something I can read. This – I just throw my hands up – looks like some three year old is fiddling with an etch-a-sketch!

But I’m sure you blood suckers want a setup – so here we go. On a daily basis the SPX cash seems to paint a decent inside period today – plus it’s also an RTV-S. Quite frankly the latter would almost make sense as I am suspecting some distribution happening here. I don’t have much evidence to that effect however except for our CPCE Deluxe chart:

Seems we’re back near that 0.52 line which has been touched ahead of medium term corrections throughout 2013. Let’s see if this pattern continues – it’s just one indicator however and most of my other momentum/trend measures are somewhere in limbo right now.

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Cheers,