Bit of a turnaround today as global debt worries appear to have sparked a selling spree. Things looked like they were going to perk up around 12:45 as the VIX started to fade, but those who have been trained to keep a close eye on the NYAD noted only a modest revival in that index, thereby warning risk adverse old guys like myself to stand back for some bullish confirmations.
Those confirmations never materialized, and the NYAD only managed a meager rise to .30 before collapsing back down to .19 at the close. Market swoon reversals are often characterized with selling pressure that reaches a maximum negative momentum at NYAD values of .10-.12 . . a level not even approached today, suggesting more of the same to come.
Below a quick snapshot of the day's carnage with the VIX's over the top 30% pop highlighted. Typically, reversals off these sharp VIX spikes are seen the day of the spike and are reflected in the bar's top tail. In today's case the VIX closed virtually at the high of the day . . a further hint of more selling to come.