No Panic Yet

➤ Prices filled the gap from Friday's close and failed to make any upward progress. VIX is someway below where it should be if there were any panic selling. I refer to the 30 level or greater as the panic zone. Indeed in the past few months prices have move to that zone prior to any rebound.

➤ Today was a pause on proceedings. We could see a rally to the resistance zone or a continued sell-off. The price action today was ambiguous.

➤ I remain at -40% exposure with shorts on DAX and UK100. This is a low exposure. The maximum exposure is +/- 200%, the level of highest conviction.

➤ Conclusion: Tuesday's price action will tell me a lot of what to expect next.