We’re not out of the woods just yet. It’s not that we’re permabears here at TJMacTrading, simply remaining objective. We traded average volume on today’s advance, with the VIX down just slightly. The put/call ratio remains over 1.0, and has for some time, never breaking the .90 mark as of late. We have two scenarios from this level that will pan out next week.
Scenario 1: Shot covering rally to retest S&P $1105.
Scenario 2: We rollover from these levels and make new yearly lows at $1005.
100 points apart, only the markets will tell us, whichever scenario occurs, we will be participants.