The VIX needs a pullback to make the second wave up to the top (third wave in Elliot Wave Theory). However, if the move from the absolute nearest top on the SP 500 can be counted as wave one, then this next move could be the fifth and final wave. The VIX doesn't show that picture as clearly but it is possible.
Max option pain on SPY is 130 and 22 on XLF which should provide some caution to shorts.
Monday should probably gap up (I say *should* because anything can happen) but that is going to open into SPY resistance. I personally will be watching for high retests on divergence on the shorter timeframes at a resistance level to gauge a short entry.
Lastly, I am abandoning my XLF short plays completely until it shows weakness. If looks to be the new leader so far.
Sector graphs (http://stockcharts.com/charts/performance/SPSectors.html):
Since July Low:
22 Days:
2 Days:
Floor Pivots For Tomorrow:
| IWM | QQQQ | SPY | XLF | |
| R2: | 73.27 | 44.32 | 126.74 | 22.48 |
| R1: | 72.45 | 43.88 | 125.58 | 22.11 |
| PP: | 71.30 | 43.35 | 123.79 | 21.37 |
| S1: | 70.48 | 42.91 | 122.63 | 21.00 |
| S2: | 69.33 | 42.38 | 120.84 | 20.26 |
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