First, today's SKEW closed over 130. This number is only extreme in the fact that it has been ages since anything around this number has shown up. It used to be that the SKEW above 130 was common place, but I am more concerned about this now as the market is still barely off its high and showing uncertainty.
Second, the percentage of stocks trading above their 20-day moving average hit 90% recently! Previously I mentioned this as being something not since for many years. That percentage closed below 80% today, and seems to have peaked in the short term atleast. I suspect we will need to see a pullback of some magnitude before we can see that number rise again.
Third, the RUT was weak today, and never really rebound. NDX has been weak for days and was down for several days while the SPX was making new highs. This is not the sign of strong market lead by tech and consumer discretionary stocks.
One sign that investors fear has subsided lies in the volatility indexes. VXST traded back below VIX. Actually, VIX was trading higher most of the day, while VXST traded lower. This is bullish.
Today's uncertainty could lead to a bit of a bloodbath tomorrow. Or we can trade higher. Or both, like we did today. Whatever the situation, a set up for a bullish week would suggest upside movement tomorrow is limited.
