So the VIX dropped something like 30% today. . .that's a lot for a one day move. Somehow, yesterday's worries all got set aside and folks bought everything in sight. The retailers performed especially well along with the financials. . .two of most (previously) oversold sectors.I feared that we were going to see a pop and drop at the open, especially with the NYAD kissing 5. and although the NYAD did fade for the first hour, the TICK remained adamantly bullish.
Once the Qs broke through R1 resistance about noon and the TICK started up slope I figured the next target would be R2 at 50.80. It always amazes me how the pivots act as magnets to attract and repel prices and today's action was a classic as the high close of the day was (hold the applause) 50.79. Once the Qs got through the noon hour games (always a bad time to trade) the parabolics and channel kept me long into the final 5 minutes when I picked up some Dec OTM puts just in case this little dream scene doesn't continue tomorrow. That's when we find out how much of today's action was short covering.
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