Those volatility indexes tanked more than I expected and now trade at the mid 15 level and about 5% above the 10 day SMA. So no longer over bought but hardly a sell signal.

Another topic, the daily range on the SPX has been quite wide over the last few days with a 23 point range today and a range of over 20 points on 4 of the last 6 days. The range is typically under 15 so as volatility reverts to the mean, I expect a smaller daily SPX range and the markets to drift higher as they regain and surpass the 50 day SMA. And what happened to the Sub Prime mess?


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