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Is there a new trend starting in the S&P 500.
Over the last couple of weeks, when the market has gapped higher, that gap has had a bit of a follow through.
When the market has gapped lower (few of these) the market has held the sell off or followed through.
But what about flat opens?
One would think that a flat open would be a bit of a coin flip, with a slight bias higher even.
But as of late, flat opens have been faded.
Take Thursday, we spent most of the day pretty meh in the morning.
Then in the afternoon, traders sold it.
We saw something similar earlier in the week as well.
Looking at the candles it appears that a flattish open (up or down ‘only’ 10 or 15 points’) is being sold.
Is this the beginning of a new trend, where the market rips higher then glides lower?
One might argue that since the VIX dropped below 35, the S&P 500 has taken the Elevator up and the stairs down.
Heading into Friday, we still are near highs, and the VIX is still almost 30.
The VIX in contango is normally a pretty good consistent bull set up.
Heading into a 3 day weekend with the VIX rallying, that might not be the case right now.
The VIX Traffic Light is yellow.
Your Only Option,
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