What was good yesterday turned sour today. The browny (shit) show continues. This time send your thanks to Credit Suisse… The VIX futures term is turning negative, which means more and more investors are hedging for more selloffs.
The markets sold off hard today. It was down over 1.5% the entire day, and it erased some of the losses by the end of the day but still finished down by 0.70%. Overreaction? Most likely, but that is what we have to endure until spooked investors calm down and start using their brains again.
Daily Ichimoku is still bearish, and there is no sign of any changes coming, so based on the chart below, I expect more volatility and downward pressure.
The daily Ichimoku chart is helplessly bearish with no hope on the horizon. The proverbial light at the end of the tunnel is just another freight train speeding toward us. It is time to become defensive. The weekly chart doesn’t offer much hope, either. It is still bearish, and the market has a hard time breaching the cloud.
The weekly chart started improving at the beginning of the year, but that is gone too. The price is attacking the red-line support. If it breaks, the chart will be more bearish.
For tomorrow, expect more selling and a bearish trend with choppiness.
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