Two charts best define the day we had yesterday.
First, VIX tagged our next highest target: the intersection of the .786 Fibonacci retracement and the trend line connecting two previous highs.
The other one was the SPX arithmetic (as opposed to log) chart, which stopped on a dime at the channel bottom.
The bleeding continued well past the Fed’s ineffectual $1.5 trillion injection and had to wait until the low-volume aftermarket to be staunched. At that point, central bankers went to work – pumping oil and gas, the dollar, interest rates and currencies in order to restore confidence whip up the algos. It worked…at least so far.
I’ll have a separate post up later regarding COVID-19, including my latest projections for the US.
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