And Here We Are

Don't you know we're playing with the fire
But we can't stop this burning desire
--Donnie Iris

Volatility continued today with futes deep red then bought to green. Once stock markets opened the happy face was sold and then bought such that the Dow and SPX were green.

But then selling commenced in the afternoon and was steady for the remainder of the session, with indexes closing on the lows. Volume again escalated.

And here we are. The SPX is toying with the aforementioned 1900 level and perched on its 200 day moving average.

Short term stochastics suggest an oversold bounce. If it doesn't arrive early next week, then things could get ugly...

position in SPX