With flying colours?

Mid-week market update: My market analysis publication published on the weekend ended with the following:

The S&P 500 ended an upper Bollinger Band ride last week and weakened to the 50 dma support level. Past pullbacks in the most recent bull trend have ended when the 5-day RSI became oversold. Next week’s market action will be a key test of the market uptrend.

The bulls seem to have passed with flying colours. The S&P 500 bounced off its 50 dma, and the market rallied off the 5-day RSI oversold reading. Stock prices were ready to bounce, and news of a deal to reopen the government was the catalyst.

 

 

There is, however, one crucial detail. The VVIX, which is the volatility of the VIX, remains above the 100 level, indicating heightened market anxiety. It may be too early to sound the all-clear until VVIX weakens below 100.

The full post can be found here.