The most notable aspect of the day so far, are the bullish engulfing candles on many of the daily index charts. We're seeing gains of 1.5% on a number of indexes, and with the VIX -16%..the bulls are on something of a rampage.
In many ways, its turning out to be something of a bear massacre today.
Yet, even I saw this bounce coming, and I'm far from being much above 'amateur'.
With the VIX already in the low 19s..it now looks like the18s will be the eventual flooring level. The daily/weekly charts will offer good support on their rising respective 10MAs.
back after the close
UPDATE 3.03pm... woah, this is surprising even me now... 1424, really?
frankly, who knows where this madness will stop. What is clear,...can't be shorting here..the momentum is so strong, probably will see follow through into Wednesday.
UPDATE 3.33pm I gotta say, seeing my revised best guess of 1422/24 being hit today, a real surprise.
It looks like VIX has a chance of breaking (briefly) into the 17s on Thursday, assuming the market holds together until then. On any basis, going long VIX in the teens seems like an obvious trade, not least when we've had a number of key warnings triggered in the past week.
Eyes on the bigger charts !