So, SPX500 along with global indices are heading down. In fact, at time of writing, all indices are down 5-9% . OUCH !!!! It's a gap down, so if you missed it like I do (had to take care of the kids, back to school after a week long holiday), then watch the chart first!
Sadly, despite so much has been done to prop up the economy, it seems to go the opposite way.
Sadly, despite so much has been done to prop up the economy, it seems to go the opposite way.
Comment:
look at the green bullish hammer on VIX, it shows how much buyers are pushing up the price If the unemployment figures are going to be bad on Friday, it might be the catalyst needed to drive down the indices further.
VIX is showing a nice hammer , a bullish signal while SPX 500 is up more than 6% last night and closed with a bullish engulfing candle. Since they are negatively correlated, one side has to give way. Which will it be ?
If you put a knife on my neck and say, trade one , I will bet on shorting SPX 500. See my latest chart on updates.