Just Treading Water...10.12.16

It looked like the market was going to get some traction today but the afternoon session erased most of the morning's gains and as we head into the close of the week the odds for the bulls are hard to find.  Early disappointing earnings may have spooked traders amid renewed fears of inflation, recession,  wikileaks exposure of Democratic dirty tricks, rampaging elephants, cholera, etc....
Nothing is certain right now and market volatility is more likely to increase than level out as forecast by the latest VIX Ponzo Update,
The current SPY profile using the VPM volatility filtered chartpack illustrates this argument.
While the VPM does a good job of avoiding drawdown the equity curve is clearly struggling and reflects the tentative reliability of technical analysis for short term forecasting.
When in doubt..stay out....which is what the 2 Day Alert is telling us to do.