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Call me old-fashioned but that stubborn VIX above 30 is still preventing me from buying the dip and loading up the truck, despite what Cramer told you to do on the Lightning Round. Beyond the elevated volatility, we are forming a series of descending triangles on the major index ETF’s 10-minute charts. Generally speaking, descending triangles tend to resolve to the downside, but that is not written in stone.
After making a lower (than Friday) high this morning, we are already back at Friday’s lows, which was also resistance from earlier last week. Hence, the descending triangle. As I write this, the bears are threatening an afternoon move lower out of it. I get the sense that many traders are frozen given this type of price action, which makes things even more ominous. Whether concerns are warranted or not remains to be seen, but either way I am putting things on hold until this QQQ descending triangle (and similar ones on the IWM and SPY) resolves one way or the other. Again, timeframe matters, and we are talking about a short-term 10-minute one here.
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Great pic!
thnx!