You may recall last Friday I predicted that VIX would jump early this week. Well, my crystal ball has kept its word and VIX shot up from 13 to 17, a 30% jump within days!
Yesterday, we witnessed a bloodbath with SPX plunging 100 points within the last hour. I was thinking that we might have seen the start of the trend change after this brutal selloff but today's revenge rebound was much stronger than I thought. SPX shot up as high as 5222 before turning back again. SPX has not only comfortably taken back the most important bull line support: the 20 DMA around 5188, it has even stepped back above 5200. So it was a fake breakdown yesterday per today's bounce. With VIX on the verge of sending a buy signal, I suspect that we may continue to see some bullish run at least early next week.
It is indeed a trader's haven with such kind of volatility. When SPX was up to 5220ish today, I made a day trade to bet SPX wouldn't go up above 5240 by closing. Well, it was a great day trade to allow me pocketing in some quick money in thousands within hours. Cannot complain it! I wish to see more of such a choppy market😅
Here is my pre-hour note today:
This is from Lance Roberts:
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