Just when you thought it was safe to go back into the water, this happens. Above is me (donut) and Mr. Market (Jaws). That "one problem" I mentioned yesterday turned out to be a real doozie. The volume that was missing yesterday was back with a vengeance today and it was all selling.
The 3/7 DSMA cross is on the verge of recrossing as the Qs closed 10% below the 5o DSMA, although relative to the rest of the market the Qs held up well until the close, when it collaspsed on high after hours volume.
The VIX was the story today, with a 3 point gap up at the open, then clawing up to a new intraday high to close right at the upper bollinger band, while showing of no signs of being overbought and the MACD histogram now above the zero line.
Technically, these indicators do not bode well for the market and the globex is extremely negative (-1000)+ at 9pm pst. We may get a drop and pop at the open, or we may just get a big drop, so extreme caution is advised tomorrow. Given the unpleasant news that has been popping up lately and the market aversion to the associated risk, we may see an afternoon sell off as traders opt to fore go weekend news and unpleasant surprises by exiting the markets.
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