The S&P is forming a technical pattern that suggests an increased likelihood of a market selloff in the near future. The 20-day has crossed below the 50 and is acting as a resistance level. Both moving averages are now trending negative and the market has been unable to sustain any type of positive momentum since dropping 2% on September 9th.
Volatility prices are still low, however, so this may be a good time to buy some insurance. This is also a good time to take profits on any short volatility positions and look for new buying opportunities should the market turn.
Comments
Post a Comment