Shown above is a 60-minute chart of the SPY. It's chart would suggest some sort of retracement from the recent sell off , which so far has managed to hold the bottom trend line. At the close it appears to have setup a move to 838. But then things start to get a little tricky.
Shown above is a daily chart of the SPY along with the QQQQ. This graph does not paint a bullish picture. One time frame suggests a move higher and the longer time frame says down. This is why it pays to chart in more than one time frame. Do not let the scaling of the graph fool you (two different axis). In a previous post I mentioned that it seemed the Nasdaq was the last to roll in these counter-trend rallies. The SPY/QQQQ Correlation (bottom section) as well as the VIX::VXN suggest this will happen again soon. It's either that or a massive rally must come soon.
But if you throw in the VIX (not shown) things look much "calmer" than in November. OK, but then you have the VIX futures several months out trading near it's current levels. I didn't think I'd ever be saying a 40 handle on the VIX was relatively calm. Overnight action in the futures have also picked up somewhat, influenced by the stinch abroad.
Gold still wants to pull back to the 850'ish area, imho. If it loses 900 again this might come into play.
