This Is The Real Reality Show
Despite hitting significant volatility band levels, the market still looks
pretty weak going into the afternoon. The SPX and the SOX are below their 2.0
vol bands, and the NDX is trading just above its 2.0 band. The E-minis are
trading at the opposite end of the channel I talked about yesterday.
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The TRIN has steadily increased during the session.
And the VIX, or “fear factor” in the market, is making multi-month
highs, signaling lots of fear in the market. We had several CVR buy signals
trigger yesterday and may possibly have others tonight. Keep in mind, CVR
signals can at times appear to trigger a day early.
From a time perspective, the rally from the 10/10 lows to the 12/2 highs was
36 days…the same number of days from the 12/2 high to today. This is another
reason why a trend change may be in the making. Breaking these lows, of course,
would be bearish. Lots of geopolitical issues brewing. And don’t forget, we’re
going into the weekend.
Have a good afternoon,
Brice