Ep199: VIX Spike Warning: Is The Market About To Break?

But what we have again, and not unsurprisingly, we've got inside bars on the S&P.

We've got the inside bars on the Dow.

We've got them on the Russell.

We've got a narrow ranging bar.

It's not quite inside, but it does fall into that category.

But what we're seeing on certainly two of the four so far is those lows being broken.

And what we would typically see, and we saw this again, you can literally just look back for most of August and see this pattern repeat over and over again on most instruments, is you'll typically see the low broken by a cat's whisker essentially, and then price turns around.

So we're seeing price push lower And again, I am a little bit biased, but that does fall into that bear narrative that I have been going on about.

I'm not too worried about it because I am essentially aware of my confirmation bias.

So what I've got to do is I've got to plan for the possibility that price could actually go bullish in the short term, certainly for the intraday.

So what I can do is if price breaks the pre-market high or breaks back into the prior day.

So it goes through the prior days, loads them back into the inside.

But I can certainly reassess for those bullish trades.

We've not had a breakout in either direction on Uncle Russell.

And as I'm doing this, NASDAQ may be making that engulfment buy.

It is actually developing as we thought.

The side the bar breaks is usually a false direction and prices going in the opposite direction.

VIX is correspondingly leaping higher, so I do suspect that bearish is the direction of the day.

Now VIX is jumping on quite a big move actually, just visually looking at it, but correspondingly there's only around about 30 points of movement on the S&P, so again we've got a very nervous market at the moment.

Other factors for the bear side of the ledger.

What we can see is just the chart stripped down from the tag and turn swing system.

The daily chart just highlights the descending channel.

Again, we've got the same range here.

again what we have is the again on friday price pretty much rallied up to the range highs gave us a lovely rejection and basically just turned back down we've got that drop basing and we're going to be opening around about here on the 7690 and again just taking the lead off the future if we don't move massively lower or higher then we should be around that 7690 level near the open Everything else is pretty much in the minutiae of the grind, so I'll just leave it there to be honest.