The Market Looking More and More Like the Summer of 2007
Yesterday I mentioned the major indexes do not fully reflect the underlying deterioration that has occurred in the market place and yesterday saw further internal deterioration. The internals are now very oversold and with the market trading more than a ½% lower a few hours before the open, things are going to become even more oversold. The intraday volatility moves have increased and the market is looking more and more like the summer of 2007.
A normal pullback has long been overdue so this is no surprise. Tomorrows reaction to the jobs report will go a long way to telling us if this major bull market is near an end or if this pullback is just business as usual.
The VIX readings will likely move to extreme overbought levels this morning and may provide an opportunity for traders who understand how to trade the options in them.
Today’s Potential Opportunities on Further Pullbacks:
Stocks: CL
ETFs: IWM