One trick for tomorrow, when both VIX and SPX closed in red on the same day, 25 out of 32 times (78%) a green day the next day.
The bottom line, the trend is still up but in jeopardy. One more down day then my short-term trend indicator will be confirmed as down. The SPY intraday chart seems incomplete so there’s a risk that we may see one more leg down tomorrow. To make things worse, the SPY has gapped up for 5 days in a row so what the chances are yet another gap up open tomorrow morning? And there’s more – the CPCE chart I talked in the last night’s report, I believe its trend line was broken therefore confirming a top. Well, I guess bulls need their Guardian Angel back again. Let’s see.