Premarket

In Premarket, markets are trading near at vst pivots after 2 day selling/profit taking. As noted earlier, the reality of massive debt spending will hit sooner than later as we have high energy cost without real job growth. The insane debt spending is like novocaine to sick economy with excessive imports and job exports along with over-spending.

$COMPX 1796.18
$INDU 8504.67
$INX 911.97

As noted, VIX/VXN is rising from intermediate supports with positive divergences which is a good sign for a correction period scenario. A correction to noted target is certainly necessary and healthy, in my opinion, that markets are overbought on oversold condition with the Bernanke greenshoot intervention. The side-effect of the intervention is that we now have higher energy cost and higher interest rate which is further pressuring many who are already in financial crisis and which is further pressuring economy.

For vst short term trading, even though intraday is showing positive divergences and mildly oversold, a reverse effect of the uptrend mode could be in effect that the correction mode will continue. Therefore trading based on S/R is logical.