Here’s What Low Volatility Is Telling Us
The market is not giving us a clear
direction. S&P 500 Index ($SPX.X) has been trapped in a narrow
4-point range. This lack of direction creates whipsaw movements, and breakout
setups are prone to signal false alarms.
12:03:06
(From TradersWire)
S&P 500 Index ($SPX.X) is forming a
lacking a clear direction. $SPX.X is at 1164.24, down 1.93.
Shortly after the open (1), $SPX.X took out its intraday high, but the index
sold off immediately. At 10:00 AM (2), it broke down below its intraday low, but
the downward movement lasted less than 15 minutes. Around 11:30 (3), $SPX.X
slipped below the day’s low, but again, it did not have enough selling pressure.
Learning from mistakes are not pleasant, but if one method is constantly
failing, at least we know what kind of market conditions we are facing.
Have a nice afternoon session!
If you have questions, feel free to mail them to me.