Market charts…
Here are the charts from my previous post.
The Vix looks consolidated and wanting to move higher, which means the market will mostlikely move lower. Think to go long strong stocks when the CCI sees green.
SP 500 looks like crap, and the next support is around 1280… unfortunately. And take a look at the DMI. Last time we saw such a divergence and negative sentiment the Fed acted, and got us out of it. The only thing that will get the markets out of this negative sentiment now is a complete collapse in the price of Oil.
There is strain in the oil markets. It is a matter of when, not if, and the when should be before or during summer’s end.
(This is why I maintained my short on the USO, and waiting to add more. My short on crude is not only technical, but also fundamental. Anyone taxed 18%, overnight, feels it. China’s take away of subsidies will be felt, along with the global demand destruction. The inventory data just has to funnel its way though the system. With out incomes rising, which they are not, demand destruction is coming. We see it in the inflation numbers.)
