We transitioned from a rejection day (link to July 25th post) to an inside day (link to July 29th post), and now, with the weakness from NVDA, we have seen a lower low in NQ. $MSFT just reported, and market participants have pushed the stock lower. We will see if the market trades lower in Asia and later in Europe tomorrow.
As of now, it could end up being either a flat July or a setup for a volatile August. If bears have more firepower, they can push both the SPX and NDX significantly negative for the month tomorrow.
Here is a post on X with a mid day update.
https://x.com/MarioRandholm/status/1818342764532089008
On the other hand, VIX is relatively low. The low for July was 12.6, and the close today was 16. There is nothing to stop traders from purchasing protection at current levels.
