POSITION: no position
Yesterday’s head-fake was more important than the one we observed on October 31st (primarily because both VOLUME and VOLATILITY signals at 1275 were more bearish than they were at 1285).
As a reminder, my core risk management model has 3-factors – PRICE, VOLUME, and VOLATILITY.
With VOLUME signaling down -25% and down -13% moves on Monday (1261) and Tuesday (1275), respectively (versus the average VOLUME day in my immediate-term TRADE duration), today’s ramp in early morning volume is not good.
Neither is VOLATILITY making higher-lows as PRICE makes lower-highs on my intermediate-term TREND duration.
Here are the lines that matter from here:
- TAIL resistance = 1268
- TRADE resistance = 1255
- TREND support = 1216
If you take out the 2 hours of yesterday’s trading, this is pretty much the same risk management setup I gave you 24 hours ago. From here, I’m going to Fade Beta in this 1 range.
Keith R. McCullough
Chief Executive Officer