10am update - opening reversal

US equities open moderately lower, with an early low of sp'2056 and VIX maxing out at 18.10. Upside across the day looks probable, not least if the Oil market can begin a rally. USD is -0.6% in the DXY 97.80s. Metals are bouncing, Gold +$6, with Silver +0.9%. Oil is +0.8% ahead of the EIA report.


sp'60min

VIX'60min

Summary

A rather expected opening reversal. For those watching the micro 5/15/60min cycles... we had a clear opening black-fail candle in the VIX... with a mirror-upside reversal in equities.

Now its a case of how much the broader market can be dragged higher by Oil... which looks set to surge as energy bears rush to cover.
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First soft target is sp'2080, then 2093, 2104.. and 2115/20.

.. the last of which still looks relatively easy. The 2150s look a good broader upside target before end year.
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notable early strength.. energy stocks...

APC +1.6%
CHK +2.6%
RIG +1.7%
SDRL +4.0%
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time for some sun.. back for the EIA report at 10.30am.


10.31am.. Net draw -3.6 million.. and that is really helping Oil, +2.5% .. and dragging the broader market UP.

sp +12pts @ 2076... a full 20pts (1.0%) above the opening low.