Dow -368 to 12,265
S&P -44 to 1336
Nasdaq -73 to 2309
Volatility Index (VIX) +2.39 to 28.38
NYSE Breadth - 15-1 Downside Volume to Upside Volume (That's Bad!!)
Almost on cue the Market is heading back down to retest lows of January 22. A retest is a retracement back to previous lows, but not getting all the way there. This is a typical pattern after we see large, sharp selloffs similar to the one we saw in January. Experienced traders typically will not reenter the market until a retest happens. Look for a large round of buying if the Dow hits the 12,000 level. That is 265 points lower from here.
One troubling thing about today's selloff was that it was not accompanied by a sharp move higher in the VIX. This shows that today's selloff was not due to fear. Meaning we have more selling to come. The selloff won't be over until we get a sharp rise in the VIX, typically above the 35-37 level.
That 15-1 negative breadth is one of the worst readings I've seen in 15 years...yet no fear seen in the VIX???
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment