Of concern is the fact that the SPY VDI+/- are diverging, not converging, suggesting good odds for more downside...perhaps back down to recent support levels.
As a side note the recent flashcrash on the British pound should serve as a warning for momentum traders...mean reversion is NOT the current paradigm for global currencies. That's why I like DN.
Meanwhile the Trader's Outlook is modestly bullish but with many caveats attached as earnings season kicks off and expectations for about average returns become the norm.
Kudos to Randy at Schwab> Last week's Trader's Oulook bearish forecast played out with uncanny precision even in the face of the "buy the opening dip" pattern for much of the week.
