Markets drop after the opening bell but the VIX could not even punch above 14 let alone move towards 14.70, hence the selling faded and allows a bullish come back. The VIX is now under 13 providing bull fuel. The TRIN spiked to 2.55 at the market lows today but is now at 1.19, and even making it back to the 1.00 neutral line taking the wind out of the bear sails. The SPX is at 1560. The 8 MA remains above the 34 MA on the 30-minute chart signaling bullish markets ahead so the bulls have no worries.
The turmoil in Europe appears serious. The banks are sold off, however, the U.S. equity markets only want to move higher. The Cyprus banks reopen tomorrow so the extent of the bank runs can be gauged. Italy is a mess and appears that new elections may be required. Bersani says you must be 'insane' to run Italy and Monti can hardly wait to leave. The negative commentary by Euro leaders are hurting the Eurozone.
