Red

I think VIX has broken out to the upside, but STO has a negative divergence so it looks like a bullish time for the next 4 hours.

Hoping for a sharp sell-off late in the day and to hit 1075-1080 tomorrow morning. I will then liquidate puts, at least.

Going to keep an eye on VIX and this chart to time selling the ETFs, I think:

http://1.bp.blogspot.com/_Qe2EUehGkjM/TBl1chzTD…

I think if we don't blow through 1090, this is b of 2. At 1090, c upward equalling .618 of a gets you to 1136 about where the 50d sma will be.

http://4.bp.blogspot.com/_TwUS3GyHKsQ/TBk-DuniD…

Dow jones next main support for the bulls
http://niftychartsandpatterns.blogspot.com/2010…

If we have really huge down days today and tomorrow, then I would expect a small 1-2 day rally then resume to find the 'real' bottom, wherever it is, to be confirmed by put/call ratios, etc. I think that would be followed by a pretty big rally, at least 50%-100% of losses.

If this bear rally is dinky, then I'm looking for 1130 or so followed by a bear market.

Important thing I have to do this time is cover somewhere.

Vixes are not supporting the increase selling pressure at this time.

Be careful on adds.

TZA June $7 calls, $0.08, get 'em while they're hot!

You guys are probably right iam seeing a 1180 level before the drop to 1150

Sorry I am not getting the replies to my mail box properly. I am not able to reply to your comments. will update later.

Sorry I am not getting the replies to my mail box properly. I am not able to reply to your comments. will update later

I like it! Let's all get out our pencil erasers and make that line disappear… aka government style.