It was clearly a risk off week. The technical damage continues to get worse. It certainly looks like we are in for a prolonged period of higher volatility.
Bob
Objective analysis from a Wall Street outsider.
Friday, May 18, 2012
Daily update
There is not much new in SPX today. It is still going down, still oversold, and still no sign of a bounce. There may be a big one day short squeeze at some point, but I do not know where that will start from. Possibly the daily 200 SMA in the 1278 area. I want to show the Financial Conditions index again because it has deteriorated considerably this week.
It took a considerable dive this week indicating financial stress is picking up. Here is a chart of HYG a high yield bond ETF. Notice the similarity to last years sell off in this chart.
It was clearly a risk off week. The technical damage continues to get worse. It certainly looks like we are in for a prolonged period of higher volatility.
Bob
It was clearly a risk off week. The technical damage continues to get worse. It certainly looks like we are in for a prolonged period of higher volatility.
Bob
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