This market has been really weird – as volatility has been unusually low. We saw an uptick in volatility today with the “Dow shedding more than 130 points” – that so far appears to be yet another opportunity for shorting volatility. Since Thanksgiving is coming up, I don’t expect any major selloffs in the immediate term.
Instead, I think it’s more likely that we grind higher into the holiday season.
S&P formed an A-B-C low with 2556 low just shortly after the open this morning.
The Russell is giving is a clue that the markets have reached support and are responding with upwards momentum. There is support at 1450 TF – and looksl ike we got closed and bounced up. We could retest just south of 1450 – but if this region holds, then that should conclude the near term downside for the Russell.
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