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Is this a New Short Signal for the Stock Market?

Posted by David Bean on

Trading psychology is one of the most interesting aspects of trading. New price levels can actually affect Wall Street and traders in all markets. It is the human aspect. Even if the machines are trading, those who monitor the machines can over ride them in certain scenarios. Wall Street has boldly pressed the market higher with little volatility. It appears that there is a sense of tepidness that enters the market when the VIX drops below 10. There is not enough data to support a strategy for this because it has rarely happened. There have been some nice short signals when it has happened in recent months. 

An ideal scenario would be similar to what happened on June 9th of this year (2017). Look for the VIX to open below 10 on a Friday and then surge in the first hour. It might be a good short signal for a scalp, for a day, or for a short term top.

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