I would like to see days of balance at current levels, on the other hand, I do not expect to be trading inside of yesterday range today. Yesterday low and or 50% from the high are likely to be tested and we can see continuation in any of the sides.
If we see continuation Lower the market is weaker than expected and viceversa. I expect the week to be a balanced week near current levels.
I would like to see a balance market here; for example AAPL was near -5% and that move could require some thinking on the pension fund side… if the new prices do not attract buyers the market will look for buyers at lower prices and we know how fast lower prices can appear.
VIX was up above 45% yesterday but in my opinion still not high enough around 25 to bring fear to the weak long term buyers.
R Option went to cash last week – you can read last week post.
THIRD PARTY DATA:
SP500 marked the strongest downside momentum as measured by NYSE market breadth since February 2018
The worst day for the markets in 2 years since the last 1000 point day.
Over the weekend, news emerged that the coronavirus cases in S. Korea, Iran, and Italy were spiking higher and with a rate that the markets deemed troublesome
Shares of AAPL went down -14.87 to close at 298.18 (-4.75%). It is important to remember that the SPX closed down 3.35% and AAPL has been a market leader to the new highs before he drop.