Today's bullish action virtually erased yesterday's bearish plunge, with the NASDAQ closed at new highs. While the VIXEN closed modestly downslope the TrendX was above the zero line..which is positive.
Amazingly, the price of near term out of the money VIX call options was actually less at the close today than at Monday's open reflecting a 2 day flux of approximately 100%, while the VIX index itself went up 10% yesterday and down 10% today.
Did I mention to expect volatility this week?
We still have earnings looming and a number of new stock downgrades but the markets may be starting a push back up to DOW 16500 . In addition, the emerging markets ETFS...EEM and SCHE..showed robust momentum today and may be starting a much delayed move up
M3 has once again reversed itself and is now in a full bull mode.....to say that the past 2 days have been a whipsaw would be a real understatement.