Cobra's Market View Private Messaging System shows:
THE SHORT-TERM MODEL HAS NO IDEA ABOUT THE TREND HOLDING BOTH LONG (TRAPPED) AND SHORT OVERNIGHT
The bottom line, the close was strong but I don’t think it means today’s drop is just one day event. I’ll as usual present my witness in tonight’s report.
A little bullish biased toward tomorrow for 2 reasons, not much edges, just a little better than random though.
- When both VIX and SPX down on the same day, buy at today’s close, sell at close tomorrow, you’d have 61% chances. Yes, I know you’d ask what if SPX down big while VIX in red? I will answer this tonight, not much edge for tomorrow, that’s for sure.
- The next day after a Major Distribution Day had 62% chances to close in green.