This week's VDX updates suggest a possible bullish move as the week proceeds. This move is further supported by today's solid climb from S2 and below levels back up to the pivot. Only financials remain in the dog house and we need to be alert for a possible trap door setup on Tuesday...(looks like a recovery only to plummet to new lows). Volume was moderate today with a taper from the opening 2 hours. The complete reversal swing of the VIX today from +10% to -2% reflected the internal dynamics of market momentum.
All 3 components of our little market model are at above overbought or below oversold levels.
BTW, we exited our SPY straddle Friday at noon (PST) after Zero Hedge noted the odds of a health bill vote were less than 10%. We lost 7 cents on the trade (x100).
