Before the end of last week, we had been seeing a consistent drift lower in the CBOE Volatility Index (INDEXCBOE:VIX) coupled with a rise in overall markets. As we have been predicting through momentum indications, Thursday changed everything…
We saw a complete reversal and a massive market sell-off. The Vix then closed at its highest level of volatility since April. The main catalyst being fears of a second wave of the Coronavirus. Markets have also been severely overbought on short-term basis and so it isn’t hard to see the rally would fizzle out.
So what’s next for Wall Street?
What will happen now the S&P 500 Index (INDEXSP:.INX) has seen a death-cross from a technical analysis perspective?
What are the strategies retail traders should be using/avoiding with the increased volatility in the stock market?
What are the high probability trades we’re looking at to make money as the market correction persists?