Ouch!
Prior to yesterday's meltdown, VixandMore had posted a piece on the VXO and RVX relationship, suggesting that an intermediate bottom was likely in place for the S&P. If this indeed is the case then this morning's open is likely to provide some bargain hunting for such a long trade - probably enough to sneak a 10% return.
The S&P is fast approaching a layer of support around the minor March and April reaction lows - so a gap down into the space would be an aggressive long opportunity. Stochastics are already nicely oversold, so even without the gap it maybe worthy of a pop at the open.
It was interesting to see a tepid response from volatility in the face of S&P selling:
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
The S&P is fast approaching a layer of support around the minor March and April reaction lows - so a gap down into the space would be an aggressive long opportunity. Stochastics are already nicely oversold, so even without the gap it maybe worthy of a pop at the open.
It was interesting to see a tepid response from volatility in the face of S&P selling:
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
