Summary:
Bears have 4 days to breakdown bellow SPX 888 to prove themselves.
A VIX sell signal was triggered.
| Trend | Momentum | Comments - Sample for using the trend table. | |
| Long-term | Down | Idea for trading intermediate-term under primary down trend. | |
| Intermediate | Down | Neutral | |
| Short-term | Up | Neutral |
The drop today doesn’t say anything to me. Still it looks like a consolidation pattern on the daily chart therefore it could go either up or down. Let’s wait to see how the market unfolds tomorrow. In the After Bell Quick Summary, I mentioned that if there’s a rebound tomorrow then QQQQ has better chances.
7.1.0 Use n vs n Rule to Identify a Trend Change, bear sees some hopes finally. Now it has 4 days to prove itself.
7.3.4 VIX Trading Signals, VIX rose from under BB lower boundary into BB, triggering a well known short-term sell signal. From below chart we can see that the signals worked so far so good ever since the 2008 bear market.
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