The markets immediately recovered from the opening gap, making SPX 980 a clear line in the sand and important future level to watch. It would appear that the shorts then covered hard on this low volume day, pushing price all the way back up to the five-day moving average, which is proving a harder nut to crack. The early weakness in internals has also turned the corner, suggesting to me for now that we end in the upper half of the daily range, if not higher.
Postscript: Both the VIX & SPY moved higher today... a brief prior study here.
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Schedule for Week of July 31, 2016
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