TRADING DP

[TREND1]

3/2 Ultra-Short-Term Indicators: Yesterday's climactic reading came across as an initiation impulse but there was no follow-through on the rally. It may be an exhaustion or buying climax after all. Remember that these indicators are useful for the next few hours to a day or two. Yesterday's climactic readings were likely fulfilled by today's pullback/exhaustion. The VIX remains beneath its average with means there is a bearish bias among traders. If it gets too bearish (i.e. a close beneath the lower Bollinger Band), it is usually followed by a rally "pop". That's likely what we saw yesterday after the VIX closed beneath that band.

Conclusion: Indicators are moving more neutral. Ultra-short-term is neutral given no climactic readings and a VIX that closed near its moving average. Short-term indicators and intermediate-term indicators are all pointing down. Yet, short-term indicators are sitting in positive territory still and IT indicators haven't broken their rising trend just yet. Given the likely exhaustion gap, I would look for a test of the bottom of the rising trend channel on the SPY