3/12 Ultra-Short-Term Indicators: Not surprisingly, we saw very climactic readings on the CVI and Participation Index - DOWN. You'll note that typically when we get these readings, we see another day of lower prices, followed by an exhaustion and direction change. I am looking at these readings as "initiations" suggesting lower prices to follow over the next day, maybe two. The VIX did penetrate the lower Bollinger Band and that usually leads to a price rise, but we didn't see it close below. I think this supports the idea of one or two days of lower prices followed by a rally 'pop' of a day or two. Remember, these are very very short-term indicators.
Conclusion: Since the election, we have had rallies followed by a pause or slight trend lower and finishing with yet another rally. I think the shine is finally wearing off the Trump pro-business teases and of course, the Fed raising rates has likely added a weight making it more difficult to accomplish upward price movement.
