The markets had a stick save towards the end of the day today. The lack of volume in the futures markets is telling in the swings we are seeing, most notably at the end of the day. This type of action is going to be the norm going forward as volume simply wont ever come back.
I find it interesting that the markets are correcting right ahead of earnings season. Investors like I said are front running the tape.
Looking at the VIX, I am seeing upward pressure on options premiums, This is a clear bearish signal that this is not just protection by bulls, but purchases of options at higher premiums, thus indicating some rough seas ahead.
We now have so much confirmation now that we are entering the next leg of the bear market cycle that any moves up in the market will be short lived and sold into.
The more recent late day buying on low volume only alleviates the short term over sold conditions that the market faces.
I see more and more investors just waiting to reload on the sell/short side.
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