Thursday, September 4, 2008
The SPY has broken its four week range to the downside, and significantly so. Particularly remarkable with oil down over -1.5%; a real puke, if you'll pardon the phrase. Adjusted Tick is heavily negative, but it may be gathering support here for a run back up to the declining VWAP. This puts us very oversold on a daily basis (2-Day RSI < 5). Interestingly, Consumer Staples remains positive on the day (XLP +0.25%). SPY support at $125 anyone? Going once, going twice...
10:35PM PST: Not alot to say except, wow. Looks like a late or mid-July test is coming down the road after all. Hard to say, very tricky. Volume is spiking and VIX is on the rise (about 24). Rotation is incredible... day traders only in this market.
Closing Update: Ugly.
Rewind articles to refamiliarize yourself with:
o VIX Stretch
o Shall We Bounce?
o NASDAQ Down 3
o NASDAQ Down 2