Updates for Thursday 8/20/20

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Below is a time-delayed excerpt from our live updates for members.

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Updates 3:20 PM EST - Thursday 8/20/20

Short Term
$VIX is still dropping sharply, but $VXN has started to go sideway from the initial drop this morning.   

Our recommendation is to tighten stops on your $SPX $NDX IWM short-term bullish positions and think about taking partial profits.   There is no guarantee that $VIX $VXN won't start climbing again tomorrow, and cause $SPX $NDX IWM to drop again.   

Updates 9:46 AM EST - Thursday 8/20/20

Short Term
$VIX formed a top at the top edge of its channel.   If you look at $VIX hourly chart that we showed you at 12:55 AM today, this means that $VIX is likely to drop back lower in the channel.   This is a short term bullish setup for $SPX $NDX IWM.

It does not necessarily mean that $SPX $NDX IWM are ready to surge much higher.   But there is a bullish respite.   $SPX $NDX IWM are likely to retest their recent highs, but understand that the underlying mood for the bigger picture is transitioning to bearish.

Updates 9:22 AM EST - Thursday 8/20/20

Short Term
$VIX gapped up overnight and tagged the top of its yellow channel briefly.   It pulled back a bit but is climbing back up towards this top edge again.

$SPX $NDX IWM are all gapping down.

There is a high probability of $VIX surging out of the channel by a small amount.   Then it may still drop back into the channel, but overall this action will lift $VIX EMA lines upward, preparing for its eventual rise out of the channel.

What this means is some amount of selling will start today.   $SPX $NDX IWM are likely to get down to their green support zones to search for new buyers.   This is the first line of defense for $SPX $NDX IWM.   We expect that $SPX $NDX IWM will find some support here at least initially.

Updates 12:55 AM EST - Thursday 8/20/20
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