This throws a monkey wrench in the works. RSI on the $VIX 60min chart closed 31 today so this is showing that the $VIX is short term oversold and is prime for a bounce. If not for this, I would be fairly convinced that we should get a bounce starting sometime tomorrow but now I don’t know. We may need one more days of selling before any bounce starts. Just have to see how it goes tomorrow when everyone’s back.
In the meantime and per the 5,3,3 Sto, market is as oversold as ever and if this does not initiate a bounce, then I have no idea what will. I am assuming for now that we will get a bounce starting tomorrow and I’m looking at a couple of Fib areas where I think the bounce will stop. The market is damaged goods and so I don’t think there’s much of a chance of anything more than a short term bottom here nor do I think there’s much of a chance for $SPX to rally back to the 1434 area of overhead resistance. I just don’t see it and this is due in part to AAPL. So I think that if the market does bounce then we could rise somewhere near the Fib retrace areas of 1403 to 1411 and that will be that.
Stay on your toes.
GL
