Hello Everyone,
Tuesday Comments:
The last 3 sessions on the SPX have traded in an 80 point range with much of the trading around the mean - the structure has been a corrective mess with divergences forming. However, the VIX shows a triangle forming (potential wave B) following an impulse higher at $28.15. With this backdrop, the VIX is set to thrust and unless it takes out a prior low (HS formation) the odds favor and upside break since the triangle formed AFTER an upside move which would imply a down market. Energy is building and the VIX is important guide to monitor. Also tracking an expanded flat potential on the SPX 15 minute chart.
This is likely to be wild - for the FOMC 2022 meetings 4 up (avg 2.33%) and 1 down so please adhere to your plan. The SPX has been below it's 5 day EMA for 5 consecutive days which clearly has the bears in control - the bulls will need to reclaim just for starters. Remember, surprises tend to happen in the direction of the trend. Respect the trend and continue to monitor.
Please take a moment to look at the trade ideas.
