Thursday, October 16, 2008

First Hour - 10/16/08





Extreme volatility is still here!

We have options expiration tomorrow, which is not helping to calm the market. We probably have some bulls being a little early looking for bargains. At the same time, the market doesn't become bullish until the lows are tested several times.

In the first tumble of the morning, the $TICK simply was not cooperating. This led to a rather rapid test of the 14-period EMA on the 15 minute chart, which is still acting as resistance. The VIX is still signaling bearishness, and will probably continue to do so until the options expire tomorrow. Then we had a rapid tumble to new lows.
Charles

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