Market Outlook – drift into our line of support – here’s the ES_F – watch the lower levels and if we lose the 4224 the gamma dealers will have to chase lower. The outlook is that short action will accelerate and bounces into 4284 that do not hold will give us more downside. The VIX is also bouncing off its floor –
We will work to leave our positions that needed this move downward to extricate ourselves and collect some tidy gains in the interim.
NEXT WEEK will be a big positioning week for us as the flow of price action will tell the tale in the near term. We are still the only global market that is capable of delivering alpha – and the Euro weakness will only send more money here. The slide down is not a given – in fact, it could be a grind up. So we are going to watch these 4hour charts and position as well as possible to engage.