Thursday, December 18, 2008


Large dislocation in the currency markets, with the dollar moving higher. The VIX has continued to move down, but equities have not been able to gain ground.

The 900 area on the SPX is providing support so far, but if that level fails to hold, downside momentum could pick up although I note that the 30 minute stochastic fast made a trip to the bottom range and has turned up while the slow is still pointing down with room for more decline. The 60 minute fast is pointing straight down and the slow is still just coming off overbought: