Hello Everyone,
Yesterday the SPY/QQQ formed inside candles (unable to make a higher high or low) while closing near the lows. Today, the indices gapped up but were once again stymied (unable to make a higher high) and traders faded the gap right from the open with the indices experiencing a trend day down taking out their recent lows. Now the onus shifts back to the bulls to impulse back to the upside and reclaim a supply zone overhead. Yesterday I noticed a big move unfolding in the VVIX (measures implied volatility of VIX options) and posted in the trading community that traders were clearly placing some hedges in front of next week's CPI report and today the VVIX continued to ramp higher pressuring the VIX higher breaking above its recent highs which served to confirm today's selloff in the indices. Lastly, TLT also saw it's gap up faded as sellers came in near the 20 day MA and pressured it back down to yesterday's lows while the US Dollar clawed higher after gapping down - all above indicative of risk off action today.
Please take a moment to look at the trade ideas.
