Nine days down.... Monday marks the end!

Friday the SPX did a head fake again, but this time it was meaningful. The market ended up providing a nice bottoming candle... a gravestone doji. In addition, the MarketForecast for both the SPX and the NDX remain with a strong bullish cluster. Everything is in order for a bullish Monday. It should be easy after 9 down days and a VIX hitting 23 intraday. Futures support this now, with the E-minis up about 1.35% currently.

Less than 25% of stocks are currently above their 20-day moving average. This has been the case for the last 3 days without going lower. It looks like a bottom is very close here.

The VIX needs to close below 20 before we can get bullish. I also want to see the SKEW come in very low - below 115. 

On Friday, I rolled out the SPX 2100/2090 that was expiring Nov7 out to Nov11 for 20 cents. I also added a small SPX 2115/2125 exprining Nov7 for $1.25. The market can jump 1.5% tomorrow and that still would not lose money. We need to monitor how big the rebound will be. 

If the VIX does fall, and VXST closes lower than VIX, then we will get more bullish. With the election looming, it will be tough to get a huge jump unless the market feels the election is already decided in favor of Clinton.