As we slide into the close on new VIX highs (now outside ‘typical’ Bollinger band levels), I thought I would share a ‘next support’ chart from last night’s ETF Rewind newsletter.
Effectively, we look next to the Mid-July 18th lows (just about there as I hit ‘post’), then the 200-day respective Moving Averages, then the prior 2011 lows. RSI & DV_indis indications are now heavily oversold. However, there is the risk that a multi-day break of those intermediate 200-day levels could precipitate more automatic selling.
While a real panic could easily test anyone of these levels, today’s InTrade Odds (hat tip to Leo & Zero Hedge) of bill passage near 20% may say more about what could happen if a bill does indeed pass, even if its just by one house for now, given how well telegraphed a failure has been. Well, at least that is a bulls’ hope, and of course, tomorrow’s GDP read is another matter altogether….
