$SPY $DIA $QQQ $IWM $UVXY : This market has been doing higher highs on a volume divergence and already on a VIX divergence. The VIX has found a support level and it has been consolidating at 28. A reversal is expected since those that bought the panic have already made a profit and those who were caught in the euphoria are close to break even.
It makes sense that the market will take a break and will find support, whether is is at its bottom or at 0.236 Fib retracement. that will determine if the market will go for another round or if this is a continuation to the downside.
If the theory is right, this recovery rally is what the classic trading theory calls a bull trap based on the "back to normal" cycle.
It makes sense that the market will take a break and will find support, whether is is at its bottom or at 0.236 Fib retracement. that will determine if the market will go for another round or if this is a continuation to the downside.
If the theory is right, this recovery rally is what the classic trading theory calls a bull trap based on the "back to normal" cycle.
