Yes, it was impressive. AAPL, FB, GOOGL and AMZN delivered big time. Yet, AMZN, the one that was best positioned to clean up, hasn’t yet broken above a key Fib level, let alone the top of the 20-year old channel which marked the July 13 reversal.

If it does, fine, bears should prepare for a long, long winter. But, until it does, this remains a dangerous moment for the recovery’s poster child.

While we’re at it, did anyone notice that after tagging yesterday’s downside target, futures bounced only to the .886 Fib?  Or, that SPX is poised to pop and drop at its own .886 Fib?

Again, not a breakout.

continued for members…

Unless it can push above the red .886 after testing the bigger white .886, the next step is necessarily still lower.Ditto for SPX. VIX still holds quite a bit of power in its hands.  The fact that it hasn’t yet broken down continues to tell me that TPTB are not ready to allow broader markets to soar to new highs. They certainly could, but they haven’t. By choice.Oil and gas continue to look weak, even though we got bounces at targets yesterday. USDJPY is getting a nice bounce, but only because the NKD is taking it on the chin today (just fell below its SMA200 again.) Otherwise, USDJPY has plenty of additional downside potential. While EURUSD tagged the top of the falling red channel.DXY should get at least a brief respite.This means that GC’s backtest of this little red TL extra important. A failure to hold it would suggest going back to 1923.70.

UPDATE:  9:37 AM

SPX tagged its own .886 on the open.

UPDATE: 3:35 PM

Not exactly a big surprise, this bounce, but I don’t see anything to fundamentally change our outlook.   I’m going to call it a day, but hope to post more over the weekend.  GLTA.  Have a good one, everybody.