Key Algorithm Calculated Support Levels: 3917 (MEDIUM) / 3900 (MEDIUM) / 3857 (LARGE) / 3820 (MEDIUM) / 3800 (SMALL)
Key Algorithm Calculated Resistance Levels: 3943 (SMALL)
Assessment: Market was essentially flat yesterday. An interesting tidbit was that the VIX went up by a decent amount. A little odd for a day that was flat. The VIX is basically the fear index, perhaps the big boys are loading up on PUTS across the board expecting a downturn. I know, silly me, I have been waiting for a material sell-off for almost two months. I think the market movements and the bullish case would be a lot stronger if the bottom fell out of the market for a little bit. It would setup a heck of a strong move back up too. We’ll see what we get today, but that VIX move yesterday has me intrigued.
Based on the futures, we should see some initial selling. We’ll see if the bulls recover from the selling or if we see something more extended.
Good luck in your trades!