Wall Street counted significant loses across the board today,though Dow remains 1,9% up for the month of May.Whether the major correction,predicted by various bears,is ante portas,is the million dollar question right now,but in our view the markets still can sustain more loses before the macro trend is reversed.
That said,VIX can give more than a few hints on where we are heading,and today it surged by 12.18%,breaking slightly above a macro bearish trendline,ending above the 15 mark,at 16.3.
Oil had-unsurprisingly-another bad day,finishing at 91.7$,falling more than 2%.It is now trading below both its 50 and 200 day MAs’,just over the 50% fibo level as seen on the chart.MACD is at the zero reading,with a negative trend,while the RSI is at 40,also with a negative trend.Should the 91.5$ support brake,we look at the 90$ level for further support and below that at 88$.
Finally,we take a look at the Baltic Dry Index,a bellweather for the global economy,that after recovering from the lows of 2012,has recently portrayed a negative dynamic.
(Chart courtesy of StockCharts.com)