These last few days are some of the wildest I've ever seen. Right up there with post 9/11 trading and some of the upside action in the 200 bubble. As Jeff Macke attested to tonight on Fast Money it's just treacherous out there. Even if you chose (guessed?) the right side (long or short) for the day (hour?) you're likely to get stopped out by some violent move caused by some rumor or headline. Here's a shot of the Dow over the last two sessions (each bar is 30 minutes) which show the 600 point range with some big, quick bursts which coincided with events on CNBC.
The VIX spiked even higher today and hit 42.16 before reversing and good old T2108 has bounced back over that key 20 level. I think the indices set all-time volume records today but I'm not sure. Does anybody know a site that provides such data? Record or not, the volume was extreme and is exactly what you want to see when you're looking for a capitulative bottom. I just wonder what options expiration will bring us tomorrow.
Like the Dow, the Nasdaq and S&P regained most of what they lost yesterday. Both indices are perched just below a couple of lines of resistance.
The Russell bested the 4 and 5% moves by the indices above by gaining almost 7%. That puts it back above its 50 and 200-day moving averages. It also broke its September downtrend today. I've been hearing a lot of talk about how tech is gonna lead the way up but it seems that small caps are still the place to be.
Some upgrades for the Russell today..
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Lat(+) |
| Intermediate | Down | Down | Lat(+) |
| Short-term | Down | Down | Up(+) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
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