A nice little gap up to suck in some unsuspecting bulls would be a textbook way for the day to go. That said this week doesnt really mean much in the grand scheme of things as everyone is in the Hamptons already and there is no volume up or down.
<i>"That said this week doesnt really mean much in the grand scheme of things as everyone is in the Hamptons already and there is no volume up or down."</i> Yes and no. There was nil volume on the up-sessions past two weeks, while yesterday the ES traded 2mil contracts on the way down. Markets should be drifting higher on light volume if they have a bullish bent, not selling off three days' cumulative volume in one session. This current oversold, dead-cat bounce was propped on hope of a bonafide interest-rate cut 9/18 or earlier. If the fed meeting comes and there is no change in policy, from 2:16pm there thru 9/19 close of trading might be the biggest price move inside a 9-hour stretch of trading we've seen in ten years.
on a 5 year ,monthly spu chart connect mar03,jul06,and aug 07 lows and we are still in our bull channel,spus need to break below 1370 area for legit bear mrkt
Yes, looks like you're going to have your chance here. But will you actually take advantage of it? I agree with this premise, and thus am selling into the higher opening.
yep sell into strong open and short it again and fade it into the end of day. Looks like a sucker rally open to me. Maybe volatility and crazy swings are back?
It may have peaked, but I wouldn't count on a quick reversion to the mean, the vix has a tendency to jump around for a little while after a shock. Looking at the indices at this moment it looks like they had their morning pop and are trending lower so far... of course this could change, but I think the 200 day MA will be retested on the Dow within the next few days. -Neo