The bulls took back 775 on Friday.  This Monday morning futures are up, and it looks like we’ll finally get some higher high daily candles.  If you just waited for those higher high candles, you’d have missed six days of carnage.  VIX has backtested it’s bottom trendline channel, and should head lower now.

We also saw a few of the inverse 2x short ETFs go parabolic last week.  SKF hit 300.  We were pretty oversold in the market.  We’ll just have to see if a run to the 50 dma’s occurs this time.  I think it will.  CBOE p/c ratios were high for three consecutive days, which should be bullish.  Equity p/c was consistently 1.1 and total p/c 1.5 ish.  Watching QLD, SSO, TWM, and DNA longs for entry.

SPX monthly chart.