No Capitulation

But when the wrong antidote
Is like a bulge on the throat
You run for cover in the heat
--The Fixx

Was thinking that we might see a capitulation low this past week but as this article notes, we didn't get it. The SPX rallied this week to recover last week's losses.

Was eyeing 1250 has a potential low followed by 1200. The Fibo 38% retracement lies at 1135.

As the author observes, central banks have been more prone to act when market action gets ugly and we haven't seen that yet.

As such, perhaps this week's upside action was natural action to relieve near term oversold pressure. With shorts blown out, there may be unfinished business on the downside.

Or maybe we've hit an intermediate low and we're into another uptrend.

Either way, shouldn't take long to find out which case is in play.

positions in SPX