Weakness and VDX Update with a low odds BUY...07.24.15

Friday was extraordinary for the stunning weakness in the 130 minute RSI2, which opened at 2 and finished at .25   I actually don't recall ever seeing a value that low and the implication is simple...no buyer interest.  OK, there was a little mercy buying in the last 10 minutes but this could simply be the prop shops pumping the longs into the close so they can sell them down hard on Monday...a little trick I learned from my days as a prop shop trader years ago.
For M3 subscribers ...you can see the current module profiles here...they will be posted each weekend so as to help see the dynamics occurring in each model throughout the week..
The current signals are mixed..both long and short... and that's because the mean reversion models of SPY and XIV have fired.  I've talked before about the danger of a Martingale strategy...you do not want to keep buying on the way down....and its unclear right now if we're going to see any recovery next week  as we are still likely to revisit the recent SPY low of 204...which is about 4 points further down the price line from current levels. (see previous VDX buy thresholds below).
As a result of these technical factors I consider the SPY and XIV MR long signals high risk.   A more likely scenario is an end of month/first of month rally at the end of next week.
We'll be changing the M3 password next week and subscribers will be emailed the new log-in tomorrow.