11 days ago I ask…”What does Fear looks like?” The media reflected it by the photos above…I shared with Premium Members that Fear was reflected in a different way, per the markets and patterns (See what does Fear/Panic look like… click here)
Below is an update to the high fear levels of a couple of weeks ago as the markets face the 50/50 challenge right now….as the 500 index is close to its 50% Fibonacci retracement level and the VIX almost hit 50 this past Friday…The 50/50 Challenge is at hand…
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With the 500 index at its 50% retracement level and the VIX close to hitting the 50 level again… odds lean toward a short-term bounce again.
With the 500 index at key support and the Russell as well (see support/seeing Double in the Russell 2000), should support break here, things will get very ugly. As shared in the Russel post, we own RWM right now and aggressive investors should look to be short the Russell and look to add to those positions on rallies.
If you are not comfortable with attempting to “Score on defense” (owning inverse ETF’s) that is 100% ok!!! Protection of capital was suggested one day before the quick decline got started, due to some very ugly chart patterns (see no respect here) Protection of capital still looks to be a quality idea, even though several counter trend rallies must be expected!
Andrew….At this time at least for me, the Dollar is really a muddy pattern, other than it hasn’t been able to climb above resistance that has been in place for over a year. If the past is any guide, should the Dollar fall here, most risk assets should do well.
US Dollar pattern looks to be signaling a market direction soon….?