In this briefing:
A brief positioning sequence update as trade kicks off for 2019. Our S&P bounce sequence outlined after Christmas met our C wave target and now set for some tactical ranging before reach for new lows in Q1.
The fact that Asia could not must a rally on the back of the US 5% move higher on December 26th shed light on the bias this is resuming today after flat range patterns are breaking down.
Sell rallies remains our macro bias, however we see a tactical low shaping up next week in part of a range bounce flat pattern ahead of the bigger bear cycle due into late Q1.
Asia base case downside targets are outlined as well as fresh short resistance levels.