How about just a fun, raunchy bit of humor from good old Norm MacDonald? Or maybe you’d prefer another Elliott Wave article? Yeah, that’s what I thought.
by Avi Gilburt
It seems the action seen this past week has bears scratching their collective heads once again. With many viewing the market as certainly “topping” back in March, the market has doused cold water on those expectations, as I had been strongly warning would likely happen.
Since holding the support we noted several weeks ago at 2330SXPX, the market has seen quite a powerful move back up to the target we set between 2380 and 2410SPX. And, most of the rally was seen on the back of short covering of those who jumped the gun on the bearish side of the market.
As some of you have already read, the volatility index ($VIX) went single-digits on us today, which hasn’t happened for over a decade. Indeed, we’ve been mired in low volatility for a long time, and ULTRA low volatility for over a week now. Here’s the long-term view:
It looks like someone likes the Biotech ETF this year, as demonstrated by the percentages gained on IBB plus the 9 Major Sectors, as shown on the following Year-to-date graph.
And with IBB poised for an upside breakout above major resistance, it’s one to watch, as shown on the following IBB + Major Sector charts.
You’ve probably heard the old trading maxim that people will use any reason to sell in a bear market and will use any reason to buy in a bull market. Well, we have a fine example of the latter this morning: