No new lows but accelerated selling during the last two hours and worst in the last half hour. The volume was lower than the last two days and the VIX was up again today but only mirrored the action of the market without any unusual upward movement.
The implication is that there appears to be mostly complacency and a continuation of the downward trend without any clear signal of anything other than that. We’ve now been hovering in this area of the DOW between ~11,150 – ~11,450 for the last 7 or 8 days with several above average volume days.
This mostly sideways action may continue until the averages intersect with the down-sloping 20-Day MA’s and then we could see a strong break. Without a spike downward with an accompanying spike in volatility before that intersection, this current action would suggest a break downward to new lows at that point.
Continuing to trim positions, sell premium ATM, or close OTM, and adding downside protection for ST income and risk reduction.
