Before we look at the VDX updates here's a fascinating (to me) article on a Equinix (EQIX) server facility in NJ. It may give you a perspective on what's really going on during the trading day with the robots and the institutions while you await confirmation of your 1000 share order.
Now to the VDXs>>>
The chart I always consider is the VDI +/- and TLT is the only one with a positive VDI divergence.
How do we reconcile both SPY and the VIX having downslope VDI+ readings even though the overbought/oversold charts are diametrically opposite? One clue may be the volume chart of SPY which is clearly on the wane. We have no volume data for the VIX so a metric comparison is not possible. One other caution on the SPY...current price action is blow the RSQ line.
Although there is the camp arguing for a breakout to new SPY highs, or at least a quick pop to 210, the technical odds are not so supportive.
LQB shifted its focus to bonds and away from equities over a month ago and so far that decision has been a good choice. Longer term we believe that bond models offer a higher risk/reward payoff than equities but we're always prepared to change course if market conditions warrant.
