Meanwhile, most stocks trade below their important 20 day moving averages. In fact, so many trade below that level that the market seems to be getting critically oversold in the short term, as seen by the areas marked with pink boxes below.
Volatility indexes are rising in a slow and slight manner. Until the VIX closes below 14.5 this market could sell off hard and fast to mark the bottom of this pullback.
Trading here is tough unless you want to play condors on the indexes and hope this long sideways action continues. I am waiting until we get the sell off in order to take a more directional trade.
