Not much to say about today’s action, especially with regard to the Q’s. Those black candles have marked turning points in the past and usually without much lag time. If the Q’s don’t drop a bit tomorrow then this has to be considered a false alarm.
The breadth indicators that were indicating overbought yesterday are now, for the most, moving into neutral territory which could mean that the opportunity for a pull back of any further degree in the markets, outside of the invincible $NDX, may have passed. I’m certainly not betting on a pull back, just expecting one. Just have to see what happens tomorrow.
The other day I said that I thought it would be important for the $VIX to close in the 20’s by the end of the week. I still think this is important and am surprised it hasn’t happened yet. Even so, the $VIX has been doing nothing but losing ground over the past 7 or so sessions and does appear to be headed into the 20’s, maybe by the end of trading Friday.
If you’re a bear, then the chart of the $VIX can’t be making you too happy because it isn’t a happy chart. The 20MA will cross down through the 50MA tomorrow, unless, of course, there is more of a pull back in the $SPX.
Chart courtesy of StockCharts.com