The market went down hard. Yesterday I exclaimed at how strong the Transportation and Russell 2000 indexes were. Well, today they were down 4% and 3.4% respectively.
Importantly, the S&P stopped going down right at 902. Nine hundred is viewed by technicians as being the point at which there should be support. So, many will be encouraged.
The VIX, the much talked about “fear” index rose an astonishing 12%. At 43 it is still way off its October peak of 96. But we don’t want to see percentage increases like today’s. Investors begin to feel someone knows something they don’t. Doubt is not a good foundation for investing.
Volume wasn’t great, and that is a good sign. No one was rushing to get out. It was orderly decline.
Still thinking the trend is up.
Overnight is likely to be weak with Asia lower and Europe catching its breath. It will be up the US to set an example. Morning futures will reflect overnight performance so it would be nice to get some good news before the opening.
