It is interesting to note that inspite of a 190 points cut in the DOW yesterday, the VIX(volatility index) remained in a cooling mode. This is in line with our expectation that the bulls are still in the charge of the markets. We had given a detailed outlook on VIX on saturday.

Technically, almost all the markets are still well above their crucial support zones. However, the FTSE100 is displaying more weakness as we have been anticipating in our outlook earlier. This index has formed three black crows pattern which is a very bearish signal. Still we can give it a benefit of doubt because Nikkei also had similar pattern on its weekly chart a few weeks ago but got negated in this rally.

The wave traders know that this is now a correction to five wave up move we had over the last three weeks. Uptrend is still intact until the given stoploss is triggered. But these stoploss marks are still far below from current levels. Some markets may just trend sideways before they start another bout of uptrend.

Given the bleak fundamental outlook, we are not out of the woods and long term is still very negative. Long term investors may not get overwhelmed by the ongoing positive trend.

Stocksweekly is still relevant. Trade accordingly!