Volatility spike signals a market low may be in

CINCINNATI (MarketWatch) — The S&P 500 Index has pulled in as much as 90 points, or 4.3%, from its all-time high established just seven sessions ago.

Against this backdrop, the Volatility Index’ recent spike, combined with Tuesday’s intraday reversal, suggests that the market downturn may have run its course.



Before detailing the U.S. markets’ wider view, the S&P 500’s hourly chart highlights the past two weeks.

As illustrated, the S&P has extended its downturn this week, violating support just above the 2,000 mark.




http://www.marketwatch.com/story/vo...may-be-in-2014-12-16-1310318?dist=tbeforebell

 

Weird spike in the SPY chart 212.97, but it was also on thursday, Was thinking it could mean higher prices at least first few days of the new year, but I relaize could have just been a blip weird trade. Anyone else reading of a 'melt up'?

 

traded on very little volume for sure

 

Seems it wasn't a blip. Some say it was an algo problem but AFAIK no trades were cancelled and this one will stay permanently on the charts. Has happened before many times. See this for example.

 

Thanks - Interesting blog link.