Volatility Squeeze
Volatility is getting squeezed in this market as we trade lower on the day. S&Ps made a new low recently at 1235.7, reaching our downside target at 1236. From this point, we’d expect that the fast moves are over. Expect a typical, slow-grind trade for the afternoon.
Earlier the market dropped from 1243.50 to a new low, after breaking through support at 1238.
NASDAQ holding just above the low of the day at 1752. Volatility is also slowing in this market. We expect another slow grind from this point.
Only a trade above 1785 would change that outlook.