I have been watching the tape closely for two days, somehow I would expect a breakdown with a first target at 234 zone.
Komen
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tempting both sides but still there :-)
Komen
Investorito
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I tend to agree with you, but I don't see the VIX excessively high and right now the breadth is climbing back to its opening values. So if we break, it might not happen right now.
Staying on the VIX topic, typically the VIX starts to retrace down when we hit a balance area and it has not stayed below the 11.50. That's why I am agreeing with you on the breakdown as opposed to up.
Toscana
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@Investorito, VIX behaves very strange recently :-) it looks it's gonna take some solid time before usual correlation between SPY and VIX gets back.
Investorito
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@Toscana, I am not sure, I follow your correlation divergence, can you elaborate?
I mean, it has been unusually low, but at the same time, we are at all time highs... I think that for the first time since the election, we are now being more cautions, hence VIX higher, but I don't see that they are behaving differently.
Toscana
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@Investorito, i'll make an extract of my day-by-day research and publish it. will let you know ok?
Staying on the VIX topic, typically the VIX starts to retrace down when we hit a balance area and it has not stayed below the 11.50. That's why I am agreeing with you on the breakdown as opposed to up.