Tuesday was the second day in a row that VXST (9 day volatility) had a spike and this time it was even larger than Monday’s spike. This movement in VXST is nearly identical to the movement seen ahead of last week’s downward move followed by Friday’s rally. This type of buying of short term protection is usually a sign of uncertainty which often leads to rallies.
The market is now oversold and we’ll begin looking for opportunities to begin scaling into.
Today’s Potential Opportunities on Further Pullbacks: