For the second day in a row we are seeing a combination of higher S&P prices and higher VIX readings. My prior studies have suggested this to be bearish. Although price is recording an inside day so far [correction — lower low, lower high], it’s curious to see apparent accumulation just under the pivot/VWAP even as price continues to get pushed back on each and every test. What will happen when that sell supply gives out? Most indicators are slightly negative, but up and down volume are really fairly evenly matched so far. The daily bars certainly suggest a waning of upside momentum, we remain short-term overbought, and it’s hard to imagine catching a bid into the jobs report — but still a difficult call on this sideways trade even as I hold net short.
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