1. We are very close to our short term target of 1250 SPX which should be reached within 1-2 days. The tricky part will be a brief but strong bounce can be expected from that level to the 1300 level even a bit more probably before the next wave will drive markets to even lower levels.
We are entering a mini capitulation dynamic and we(a(kends are ideal for that interestingly the VIX stays very low compared to last times 8% drop we even reached 30 levels this time we are having trouble to get above 20 – which is very odd to say the least. It tells me someone has a huge short vol position and keeps the VIX down, which makes the brief but shaply rally even more likely as that will give him a chance to get out. Otherwise it does not make sense at all as we have here the risk for a crash which is not priced at all so far.