We still have resistance on most of the major indexes. The only one that has surprised me with a bit of strength is the RUT (Russell 2000). Still, what happens when we hit low 20 on the VIX again. Although not impossible, do not expect the support at 20 to easily fail. Sure, the markets can post a huge 2% or higher gain, which may smash the VIX support at 20, but the likelihood of that occurring is low. At this point I am still concerned that we will have a sell off in the next few days.
Definitely, momentum on the downside. Will jump back in on the long side once the VIX reverses to the down side and/or once the major indexes start to show support at their moving averages. Dow should have support at 10K. NASDAQ should have support at its 50 day MA or at 2100.
Crazy market action!
ReplyDeleteYeah. Big volume today with really inconclusive action. What do you think about it?
ReplyDeleteWe still have resistance on most of the major indexes. The only one that has surprised me with a bit of strength is the RUT (Russell 2000). Still, what happens when we hit low 20 on the VIX again. Although not impossible, do not expect the support at 20 to easily fail. Sure, the markets can post a huge 2% or higher gain, which may smash the VIX support at 20, but the likelihood of that occurring is low. At this point I am still concerned that we will have a sell off in the next few days.
ReplyDeleteI'm short. That's the kind of info I'm looking to hear ;) It's funny how our biases sway toward what we want to hear ;)
ReplyDeleteI'm feeling a bit more bearish today. VIX popped up even though the markets green. Hmm...
ReplyDeleteDefinite sell offs on the Dow and S&P today (tues). Volume was not crazy high, but the indicator is bearish still.
ReplyDeleteDefinitely, momentum on the downside. Will jump back in on the long side once the VIX reverses to the down side and/or once the major indexes start to show support at their moving averages. Dow should have support at 10K. NASDAQ should have support at its 50 day MA or at 2100.
ReplyDelete