Today’s market action may have a few analysts turning to the bull side, but I remain convinced that the market has more downside left. I realize that I am sounding like a broken record and there really isn’t a lot to report.
The action today was not bullish. The VIX even on August 8, the day of the so called bottom for this correction, did not show anywhere near a panic environment. There have been a number of bear flag warnings in the VIX and the S&P over the past few days, however they seem to be largely ignored by institutional investors.
I am still holding my 30 SPY Oct22 $115 contract and remain bearish for the time being.
Today’s action was primarily driven by there being no really “bad” news out of Europe. That doesn’t make a market.
You can review my SPY Put trade here: SPY TRADES 2011
I still think there is a good chance the market will test 1000 on the S&P over the next few weeks.
That’s about all for this evening. Best to your trading!