Impulsive breakout in the $VIX along with SPY & QQQ trading below their uptrend lines today appears to be a solid sell signal on the stock market although I suspect we might get one last spike up to shake out the weak-handed shorts before the hammer drops. 120-minute chart of $VIX below.
VIX 120m Feb 10th
Just a hunch but despite the solid trendline breaks on SPY, QQQ, $VIX, etc.. (SPY & QQQ are both trading solidly below their respective uptrend lines right now in the pre-market session), I’m smelling a whipsaw rally starting in pre-market & carrying into the early regular session followed by a hard down later today & especially Monday. Maybe, maybe not but worth a shot to try & game as a active trader so I just covered & reversed (from short to long) my /NQ & /RTY in my active trading account but sitting tight on the swing shorts that I recently started scaling into in my other accounts (IRA’s, etc..) & will look to add to those positions on either a bounce today and/or early next week –or– if we don’t get a bounce & the indexes build on yesterday’s & today’s pre-market losses to move further below the key uptrend lines on SPY & QQQ, especially as we head towards the close today. 60-minute charts of /NQ & /ES below.
NQ 60m Feb 10th
ES 60m Feb 10th