The market are cheering that we didn’t have an bank failure for 3 weeks. The Citi had a kitchen-sink confessional and the market exploded.

Let see some charts:

Yes, $spx broke the downtrend line but the cost of this was volatility index $VIX to approach December lows with October lows not far away.

The put/call ratio is at the levels it was only 3 times this year, each time right before a pullback.

Who knows, the indices may have enough energy to run ino 200 DMA but that would be a major shorting opportunity.

Advertisements