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Wednesday Update - Uncle Ben Strikes Again

|Includes: Apple Inc. (AAPL), SPY, VXX

Update to yesterday’s morning post: Apple shares continued falling through the day and closed below the 50 day SMA. Not the kind of reaction we wanted to see after that type of earnings call. Meanwhile, the broader market gave it up after Fed Chairman Bernanke’s Senate banking committee testimony. The SPX, which had opened at the 50 day and top of the downtrend channel, rejected that level and headed back down. The VIX bounced off support at the 200 day for the third time in a space of one month.

On the other side, with “double dip” fears taking center stage, Treasuries broke out to new highs. Defensive positioning remains the order of the day. My near term target for the SPX is in the 1000 to 1008 area, ~6 to 7% down from Wednesday's close. 1008.55 is the Fib .382 retracement of the move from the March 2009 bottom to the April top (intraday basis).

Disclosure: Long VXX

Disclosure: Long VXX