Bank of England made some encouraging moves overnight and we had another up day (+235). Historically tomorrow has 85% odds of being bullish as the first trading day of the month.
SPY is at RSI2 of 99%+ so the odds of a turnaround are building quickly, coupled with increasing prospects of a recession economy and renewed concerns about the health of the global markets.
The VIX has been imploding at an unusual pace and is most likely to pause before settling down to our target 14 level in the next month or so.
The technical analytics of M3/M6 are again displaying positive equity lines and thereby indicating their utility in projecting long/short odds. Below are current the Momentum and Mean Reversion modes for the default M6 market cross sectional portfolio.