Markets bounced back after a horrible selloff yesterday on the back of the Fed announcement. It’s kind of a weird spot as there isn’t a lot of trading to do intraday. Things opened higher and are trading in a relatively tight range.
I’m watching to see if the VIX starts to crack anytime soon. We do have a bearish crossover on the hourly chart. But that low it made the other day after the Fed announcement gives me pause.
VIX Hourly Chart
The high from the other day in the SPY was $313.84. I’ll use that as my resistance area for the time being. More than likely, we’ll trade in a range from around $295-$310 for quite a while as we try to figure out the impact of both the elections and this pandemic.
Also, keep an eye on the VVIX. The low from the other day was $108.59. If we start closing hourly and then daily below that level, we should get a brief rally as it heads towards $105.