It’s back to reality today. The last three days of our recent melt up were wiped out today on slightly decreasing volume. Today also marked the first VIX increase in four sessions. The VIX still looks toppy though and I think a close below 45 would be a huge milestone.
While the percentage drops on the indices seem pretty bad, they’re pretty much par for the course in this extra-volatile environment. So today’s drops look like nothing but a normal pullback from short-term overbought territory. I might be more concerned if volume had surged today. Still, the indices could easily trade down another 5 to 7 percent without violating any major support levels.
no changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
