Cat and Mouse

VIX toyed with important support all day yesterday, keeping equities in the dark as to the next steps.As a result, ES spent the entire day continuing to dip below its SMA10 and SMA20 — even closing below a nice little trend line off its earlier highs as VIX refused to dive below the all-important yellow channel bottom.

It was all for naught, however, as the usual ramp job stepped in around 1am. It should allow SPX to tag yesterday’s 2470.58 target on the open. After that, however, the picture gets a bit muddled.