The Stochastics are saying this can go much further lower as we just pulled out of the upper region (second graph on the picture below) and even more damning is the RSI graph below. In Early November, the SPX failed to get into the upper overbought area, and on this move back to those highs on the SPX, its RSI is posting a lower high.
The RUT looks most concerning as it took out its support levels of late. Its Stochastics are falling sharply from overbought levels and the RSI never made a new high to support the price high in the index.
VXST is now above VIX which is short term bearish for the market also. I think some bearish positions are warranted here, as the SKEW is still above 130 and the SPX cannot get traction above 2100. We may see a move to 2040 on the SPX.
