I wanted to do a simple post tonight ahead of the much awaited JacksonHole Bernanke speech.
There is a lot of uncertainty right now ahead of this meeting and needless to say, bernanke's words are going to be a key driver to market's short term and possibly even mid term direction. It's vital to have an open mind right now. The VIX is extremely elevated indicating tons of pessimism and uncertainty.
In the two charts i attached tonight, i highlight TWO possibilities for SHORT TERM DIRECTION. Keep in mind that overall, BEARS get the benefit of the doubt at the moment. I have mentioned on twitter numerous times, this "market is guilty until proven innocent".
Bottom line, you cannot make any solid conclusions based from TODAY's market action or based on the futures action tonight. The charts will speak volumes to us come friday's close and early next week.
Here are TWO possible scenarios to watch out for.
Folks, remember, no matter how convinced you are in your view in the market's direction, there is ALWAYS a valid view on the other side. That needs to be respected now more than ever. Have an open mind right now, that's the purpose of this post tonight.
Good luck out there!