Yesterday I said that I could not determine if the pullback would stop soon or turn into a larger correction. It seems like the correction is going to take more time. So far, it has not materially violated the Dec 9 low.
But the rise from today’s low does not look impulsive
We were having very clean waves for a few days. Now it seems market has decided to make it a bit more challenging.This is all very short term, though. The bigger picture is still intact.
I guess I am talking as if index lost ground. I am aware that it advanced. Only that the advance today was at low volume and the wave pattern was a bit choppy. So I am not really excited.An OEW colleague of mine called today’s action a struggle, and right she was.
Let’s not lose sight of our levels. And let’s remember that the index is working off some overbought levels, especially on daily breadth. I would really like to get a sideways abc-x pattern, that would be perfect to set the Inverse H&S up for an assault at S&P 1000, if not more.
Again, let’s not lose sight of our levels. Setting up targets and scenarios is fine and dandy, but being dogmatic in the market is a sin for which one will pay with capital.
In closing, I will leave you with this daily chart of VIX
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5 comments:
Thank you. I read u all days. Keep on the good work.
will do ;-)
If the S&P can maintain this uptrend would you expect to see a reduction in volatility, and if so S&P at 1000 could be weeks away.
SB
I think it would be logical to see a drop in volatility of market trends up
I meant to say "if the market trends" and not "of the market trends"
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