The Pattern Formation: .SPX& VIX
Hello everyone! Today i want to share some trading ideas with yo!
1.
Have a feeling that this pattern--which had been consistent throughout 2022-mid 2023--may return in earnest. Basically, the market would set up a high on the day of Vix-Expiration, and then decline SHARPLY (on average > 103 SPX points) within two trading days. Tmrw is VixEx 👀 $Cboe Volatility Index(VIX)$
2.
Internal Weakness: $S&P 500(.SPX)$
(1) with SPX closed at ATH, the entire market as a whole looks tired and struggling;
(2) MMTW--the indicator that measures % of stocks above 20-day MA, barely moves above 50%--roughly half of the stocks are below their 20-day MA.
(3) multi-layer divergences!
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3.
TRUNCATED TOP?
(1) Although cash market fluctuates at Friday's close, the ES futures have dropped 30 points from the overnight high.
(2) 6140 at 9:25am is the new ATH--But, rather weirdly, right before market open, all the gains were erased in an impulsive decline.
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