Equities tried rallying above it but have so far failed. Note how Russell futs trade stuck below the highs of that big candle last Thursday. Similar is to be seen in S&P. Watch the lower part of the channel for support in case we turn lower.
Upside, watch recent highs as resistance.
Everybody forced into chasing "junk" and showing bosses they had "deployed risk" - ugly price action in some of the most squeezed sectors in Europe, banks, autos, travel and leisure...all down 4-4.5%
SX7E turned right on the 100 day moving average.
Play close attention when S&P and VIX both move higher
Yesterday was one of those days, although not too extreme given we had the weekend effect.
Frequent readers of TME know we tilted to buy "optionality" logic last week. There are several arguments to be made for such a long volatility preference, but volatility, use it for hedging or speculation has got cheap,...