A much deserved and anticipated rally. I was expected this. After all, why else would I be long 200% SPY now.
But this isn’t the rally to end the bear. With the market up by 100 NASDAQS, one would expect market breadth to be upwards of 85%. Instead, and despite the feverish nature of the tape, we are at just 72%. Hopefully this will continue into tomorrow and I’ll be rewarded by owning such a bold and stentorian SPY position. The algorithms inside Exodus have been flagging Oversold for a week. But yesterday was the first time it flagged oversold for our historical algorithm. That is probably a confusing thing to understand. Just know, it’s a rare event and it means the technicals of the market are as bad as they were during 2009 and 2011, when those low points were reached.
Nevertheless, today’s breadth isn’t good enough.
Enjoy the rally and the respite. But we need better breadth if this run is going to continue.
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For a 9% decline or whatever it was, the VIX never reached panic levels. Very strange indeud.
panic is relative. 1 month expected vol still > 3 month vol even with this pop
keep the change ya filthy animal.
Wish I bought that gap down this morning.
S&p up 2.15% and we’ve got 40 new highs and 1387 new lows. No Bueno.