Thursday, July 23, 2009
Exceptionally low volatility readings last night were suggestive of a big move ahead, and now we know the direction. While it may be that short covering initially put in a bid upon breaking yesterday's highs as stops were hit, with growing volume it's hard to pin it all on that. We are thus far in a clear trend day on strong A-D and Tick action, although just now price has stalled and the VIX has begun to push back. We'll see soon enough whether price can hold through the mid-day lull.