Technical update on US markets

On the left hand, the SOX and as we claimed the markets are slowly completing a temp low pattern since the SOX needed to go lower in order to print the TD combo 13. Nevertheless, the 260 low will be support for now but the little upside attempt of the market failed at the gap area not even penetrating it. Anyway, we were looking for a 3 day island type pattern anyway since the ECB hesitates to cut as does the FED still. Some players got the message wrong from the Australian central bank that they might be the start of a coordinated cut. The XBD made also the SEQ 13 today, so we have all it needs for a temp low which can only be triggered by a rate cut for now and will not be sustainable as we go into the earnings season later this week. The other factor was VIX making a 12 SEQ today and we need that 13 as well as a final step.

But we need to close the gap this week in the NDX, otherwise we have a break away gap, which adds negative momentum.