TRADING DP

[TREND1]

2/8 Ultra-Short-Term Indicators: No information to be gained from these indicators today. VIX is quietly traveling along its moving average. The Bollinger Bands keep contracting. The last two times the VIX was in a tight trading range, it ended poorly.


Conclusion: The very short-term island has formed off what appears to be an exhaustion gap. Typically these will resolve downward if the gap truly is an exhaustion gap. Given the sideways trading since the gap, it has the earmarks of an exhaustion. Short-term indicators are rising which is bullish, but a likely exhaustion on the daily chart leaves me skeptical. If intermediate-term indicators are correct, the rising wedge should execute soon.