Our little neon/black gosling has spread its wings today, taking the SPY down to late 2010 levels after losing an average one percent per day over the last eight.
As the VIX has remained contained, we need to look to other arenas for potential capitulation information. Volume has certainly spiked significantly, and the McClellan Oscillator is in the March low zone [see here].
We blew the buy bugle FOR A TRADE at S1 in the room, we’ll see, but I do think shorts would be pushing it to look for more movement beyond SPY $123 in the very near term. Legging in is one way to significantly reduce risk, or wait for a more tradable support zone to develop first. I would like to see that intraday resistance break as well/ VWAP resistance as I post this….
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