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STOCKS –
MACRO – SPY, QQQ
- RTM: Volatility Remains Elevated As Volume Disappears
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- RTM: Volatility May Really Ramp Up The Week Of December 20
- Ford’s Stock Is Ready To Break Much Lower
Stocks rose as volume dried up, and the VIX continued to drift lower. Somehow the VIX magically popped at around 4 am over 19, only to drift lower the entire day. I’m not sure why the VIX would jump over 19 in the middle of the night; markets weren’t doing much. But there, in the chart, you can see the jump.
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There is nothing to explain as to why stocks are rising right now; volume has started to dry up, with S&P 500 future trading less today than they did on Thursday. You have to go back to late August to find lower trading volumes. It seems like a combination of volatility selling and lower market participants causing buyers to just trip over themselves.
A broadening megaphone pattern is still in play for the S&P 500. It shows the whipsaw nature of a market in transition and is outlined by the two red lines. More importantly, I think this creates an overall diamond pattern. I have been trying to figure this out since the end of November, but it was not apparent until today. That would make today’s rally the apex of the pattern.
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Everything is running off this more prominent parallel diamond pattern that goes back to the September sell-off.
That’s going to be all for today. I’m going to keep these for the rest of this week.
Mike
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