We had a significant rally after Vix spiked 54.47% in 3 days, and the S&P500 index landed right on a Key Hidden Level of support, caused by the smart money buying spree after older Vix fear spikes. Each time the smart money buys the selloffs, they retrace Vix spikes by 75%, and at that point we get these levels, which if they hold, show a bullish bias is a smart thing. In this case, we rallied from it and are now testing a low volume resistance, and showing signs of exhaustion in the intraday rally, on a time at mode basis. There's a key resistance above, caused by the Brexit activity, which I expect to see tested soon. For now, I'm monitoring this progress, and holding some equity longs, but also adding to my longer term shorts in DB, FB and IBB. I'll update this chart with more details as they come.
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Cheers!
Ivan Labrie
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Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance0.43% on such information.
The time you spent making the chart is greatly appreciated!
I agree with your conclusion. Holding naked shorts myself since Thursday. I wish I could say I buy into this rally like I did with the ramp from 2030 to 2120 but I can't. It just looks like it's about to come down any second now...
Here's my swing play
IvanLabrie
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Good analysis. The risk off gauge is nice.
mabaert
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would you consider entering shorts now at 52?
IvanLabrie
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You can short with a wide stop, or short overvalued securities that are against key resistances.
Or you can open a bearish options trade too.
The key level here is slightly higher though. Couple more points.
mabaert
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my broker doesn't allow for much other option trading, so I'll wait and watch spx500 instead. Key level you mean is around 2060 right
IvanLabrie
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Yes, indeed. I'd prefer to short FB for example, using an ATR stop.
I agree with your conclusion. Holding naked shorts myself since Thursday. I wish I could say I buy into this rally like I did with the ramp from 2030 to 2120 but I can't. It just looks like it's about to come down any second now...
Here's my swing play