We've had an impressive rally on equities since the low last Friday, but there's still every reason to think that this is just a rally before the downtrend resumes. Vix broke support nicely, but bonds and precious metals are still holding up well and at minimum bonds should break down if equities are to convincingly break up further. I don't have anything suggesting reversal in terms of short term patterns on equities, but what I'm watching on ES are two resistance trendlines that should meet tomorrow at slightly over 1230:
There's nothing much to show on bonds, other than that they are still holding up well, but the picture on silver is looking interesting here. The rising channel that I was posting last week is still holding well, and a shorter term rising channel from the lows last week has also formed. Immediate rising channel resistance is in the 43.50 area with the main rising channel resistance trendline at slightly over 45:
It's the last trading day of the month today and the stats for these since the March 2009 low suggest weakness today and strength tomorrow. These stats have become much weaker on both the last and first trading days in the last few months though, so I wouldn't put much confidence in these at the moment.
