$VIX back in the 30’s and until $VIX gets back into the 20’s then have to expect more of this volatility. I wonder if $VIX can get back above the 20MA in the 36 area. Time will tell.
We had close to a 90% down day today. 90% up and 90% down days are really supposed to be rare. You see them at turning points in the market and then occasionally afterward. We’ve had so many lately that I can’t keep track of them all. A 90% down day should indicate that the market is about as sold as it wants to be and so we should at least see a pause in any decline after such a day. And it’s probably not too much to expect the mad men at the helm to take back all 247pts tomorrow.
60min chart of IWM showing the RSI below 30. This usually marks the point where the sell has become exhausted. But the odd thing is that only this chart from Think or Swim is showing the RSI at this level. Still, this is a bull flag formation, until it isn’t. The next important level is going to be in the 65 area from the 7th. If IWM doesn’t break out of this flag pattern before it takes out 65, then we’re probably looking for IWM to drop back below 60.
I’ll be travelling the rest of the week.