Interestingly, my models have chugged out a support level for the SP500 that is higher than what I had earlier this morning. There is a margin of safety building at the 808 line (see chart), and that’s only -1% lower from where the market is trading here at 3PM EST. This creates a tolerable risk/reward for me to start covering/buying.
Volatility as measured by the VIX, is up another +5% right now at 47.04, but will be overbought, from an immediate term perspective, at 49.88. So give me a US$ that stops going up, SPX 808, and VIX 50, and I cover/buy.
Keith R. McCullough
CEO & Chief Investment Officer