The market plunge continues (2/5/18)
Huge spike in the $VIX as the market continues bleeding red.
If you recall our earlier post on the $VIX (https://www.imdeadbroke.com/vix-backwardation-feb-2-2018/), the $VIX was in backwardation between the Feb and March expiration and returned to contango during future months. However, today the $VIX is in backwardation through August which could be indicative the market is preparing for a more volatile 2018.
As we’ve stated numerous times over recent months, a correction or even crash will be healthy for the long-term viability of the trend. Lastly, the markets blew through a key support level today ($2,673.61) by closing at $2,648.94. The next levels I’m keeping an eye on are $2,624 and $2,604. However, with the government look at a second shutdown in recent weeks, we could be looking at reaching a full correction sooner rather than later.
Update – During Market (2/6/2018)
The SP500 ($SPX) is holding strong at the 2622 level in trying to find new support. This occurred after the market was pushed down to near corrective levels ($2580) shortly after open. If we don’t hold support at the $2580 level, the next significant level of support will probably be the 200 day SMA.
Keep checking back for our next update – things are getting exciting!https://www.imdeadbroke.com/768-2/https://www.imdeadbroke.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-05-at-4.15.02-PM.pnghttps://www.imdeadbroke.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-05-at-4.15.02-PM-150x150.pngBuild Your Piggy$VIX,market correction,Market Crash,Market Pullback,volatility