More Volatility

Get ready for more volatility in the market after last week's wild ride. This week is another OpEx week and that usually create some volatility as various hedged positions unwind and/or rolled over.

During the recent market decline, the market has been very respectful to the technical levels. This seems to indicate majority of tradings are predominantly computer driven(HFT & Algor).

From the price actions shown in the charts below, a market rebound seem very likely. This rebound can take the indices back up to test the previously broken support level.

SP500:



SPX (SP500 ETF):




QQQ (Nasdaq 100 ETF):



IWM (Russell 2000 ETF):




I will not interpret this rebound to be a start of a new uptrend. Until the previous low has been tested and a period of consolidation has occurred, I will remain on the cautious side.