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OK, does anyone still believe very very bullish Monday? Please raise your hoof (no, no claw, please), let us either admire you or mock you the next Monday, hmm, should be Tuesday.
I think now almost everyone sees a potential Double Top in the forming, but VIX may tell a different story.
Look again at the VIX daily chart, very similar to that of Tuesday, isn’t it? Then what happened on Wednesday? So indeed very very bullish Tuesday? Well, I don’t know. The bottom line, the 10 day moving averages of the total put call ratio in chart 0.0.3 SPX Intermediate-term Trading Signals moved even lower today, which should be corrected soon or later, so still there could be more pullbacks ahead and therefore reducing long position could still be a proper way to go.
One more thing, big down day without TICK –1000 (see here) was an orderly retreat, indeed there would be a panic sell thereafter. I will from now on put this as one of my indicators. (PS: Please don’t compare your TICK chart with mine if you use different data feeder. The TICK readings are very unique, each data feeder only reports one exchanger’s data so it’s meaningless to compare them.)
Enjoy your long weekend!