Russell Warning Sign

Now that the Fed Taper is data dependent, it amuses me that suddenly there was such a stellar job report as today's, which was called "stunning" by Marketwatch. Good news is now bad news. 

Regardless, yesterday's fizzle was perfect, but not for me (because I didn't get any shorts on). Whenever you see the cash market unable to confirm pre-market futures, its a heads up. And it still is, because now the 1740.50 level is in focus. If it holds, new highs are still possible. If it breaks, things can gets messy.

It should be noted that the Russell 2000 broke this equivalent level and is back inside the previous swing high from 9/19. This is very bad price action for continued new highs. The Russell was a prior leader during the rally. Now it's leading to the downside. Take note of this warning from the Russell.

In my view, 1740.50 must hold or else risk at least a retest of the 50dma at the 1700 area.

I was looking for a VIX of 12 or under. I may have to be content with what little I acquired, December 17 calls.