Hello Everyone,
Quick Note: Roller coaster market today with the SPX opening with a gap down and then undercutting recent lows followed by a 70+ point rally back to 3640 followed by an afternoon plunge back to retest the morning lows before a slight bounce into the close (3587). First of all, I pointed out yesterday that ES had a pivot support 3580-85 which was tested overnight and then again on the open prior to the short covering rally. As the rally matured, I pointed out a concern as the VIX was also trading higher in conjunction with the indices. The VIX buyers are considered smart money and thus a warning to be sure. With that being said, it doesn't necessitate an immediate reversal (but normally shortly thereafter) but today the BOE re-iterated (they did so early this morning as well) that there intervention was only temporary and warned fund managers they have three days to wind up positions - well those comments rattled the markets with stocks reversing sharply. This remains a fluid situation.
Here we have the PPI tomorrow and then the all important CPI report on Thursday so be prepared for more volatility in the coming days. More in tonight's audio.
Please take a moment to look at the trade ideas.
