On Tuesday, the market opened higher but for the entire morning, it was drifting lower. It almost closed the entire opening gap. After that, it traded slightly higher and sideways. The VIX futures term deepened its backwardation indicating that this rally has no legs. Today’s weakness in the price action is confirmed by the VIX which is worse than it was yesterday. Unless the VIX changes (bears get squeezed), I expect selling to resume soon.
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