The Vix is now up 12.5% and we have tested (edit: and held) that 2006-drawn level of support in the SPY indicated yesterday down to S2 (say $122.50 to $123.00). At a Vix high of 29 we are very close to the levels yearned for by market observers to indicate a wash-out and reversal base (edit: VIX 30-35).
The Vix is starting to come down a touch along with oil and for the time being Tick looks like it's bottoming (edit: nope, still down trending). Headlines are about as bad as I've seen them in a long, long time. What a way to finish out the week.
VIX APPROACHING 30
GOOGLE SECTOR SUMMARY
GRIM YAHOO HEADLINES
10:00AM PST UPDATE: This isn't holding -- I'd stay out of the way, maybe even through the end of Monday (often follow through Friday to Monday) unless we see much better signs of stabilization. Vix is now +14.6%. My post times still aren't right for some reason.
10:15AM PST UPDATE: Hmm... SPY S2 still holding... I'll keep looking for a tick divergence. Obviously alot of uncertainty here, including yours truly.
11:10AM PST UPDATE: That divergence set up about ten minutes after my last post. VWAP is green again and Trin is coming down. Still be careful -- trail stops on any longs!
11:50AM PST UPDATE: DISCOUNT WINDOW OPEN TO GSE'S. Talk about by hook or by crook! Huge short covering rally to come.
12:15PM PST UPDATE: We went briefly green... no confirmation by the Fed, trail stops. Got to get to real uninterrupted work here... have a good weekend. These rumours have gotten nuts.
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