–These are the facts about the current state of the market. These are not opinions nor I’m I trying to imply what the next move is, the information below should give you an idea of what to maybe expect.
–The SP500 is down 4.96% from its all time high which it reached on 12/5/2014, the average correction since 2009 is 6.7% lasting on average 16.9 days. The average correction this year is 5.3% lasting 16 days, we are at 4.96%.
–The VIX is now higher than the future months, since 2010 the returns after this happening have been mostly positive and promising. Chart here
–The VIX is now 39% above its 10 day moving average and up 76% this month with SP500 down only 4.96%.
–The average VIX spike since 2013 from the $12 level has been roughly 64% we are at 76% now.
–Telechart’s McClellan oscillator closed under -200, dead cat bounces start from these levels, see chart below.
–The stocks that were holding up well finally got hit today $FB $KORS $UA $Z to name a few. What got hit first, the oil names, they were the ones that closed up today. FIFO, first in first out, (oil names are probably only good for a dead cat bounce).
–The Russell 2000 and the Microcaps are holding up better than the DOW and SP500 since we peaked on 12/5, many view that as a positive, some might say that the smaller names have less overseas exposure (perhaps Russia) so they are holding up better.
A proprietary indicator from Pradeep Bonde has spiked to a level that has led to bounces.
–Even with today’s reversal we had more stocks up from the open than down.
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