Friday started off like so many other sessions, with algos working overtime to counteract the effects of the British election. Our first upside target at 2438.44 was quickly dispensed with. So, it was with some trepidation that I suggested another turning point an hour later at 2444.83.
Here’s the next opportunity for SPX to top out if it’s going to. Note that ES has also reached a key Fib. I believe it’s worth taking a shot at a short with tight stops.
SPX slipped a couple of points higher before the rug was pulled out, prompting a 30.5-pt plunge that exceeded our downside target by 4 points. Follow that up with a 16-pt rally into the close, and a return to some semblance of normalcy by VIX……and it’s no wonder that traders are a little rattled. In reality, things went pretty much as they should have; it just took a little patience.
BTW, for those who missed it earlier, we gained some nifty insights into the Plunge Protection Team from our recent NDX update. Check it out.
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