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Dip4 is marching down - not done yet
We used to be software developers in our previous life. In that industry, whenever someone asks a developer for an estimate on how long it might take to code up a program, us developers used to deliver WAG, or Wild Ass Guess.
The truth is, whenever we or any market guru project where stocks might be heading, the pronouncements are just WAGs. The question to ask is what they base their WAGs on. For us, our WAGs have to be confirmed by market internals.
Today we saw some serious selling started as Dip4 proceeded for real. So let’s see what the market internals have to say.
Volatility: After a quick surge out of the gate this morning, $VIX $VXN rose up sharply. Their sharp rise correspond to the sharp drops in $SPX $NDX $RUT prices. This confirms that Dip4 is proceeding as expected.
There is a high probability that $VIX $VXN will pull back some amount tomorrow Wednesday. But they are likely to resume their upward surge until they reach the following resistance zones.
The rest of this article covers:
$SPX $NDX $RUT support & resistance zones during Dip4
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