A short video today comparing this current retracement with previous ones over the past year.
The previous ones have tended to resolve themselves with clear reversal signals occurring in the S&P, Dow and Nasdaq. We’re not seeing that right now, which indicates we have further to fall.
Currently the three main indices all have negative OVI readings for the last few days, with yesterday seeing another price drop following Monday’s low volume temporary reprieve.
So the clear message is be super careful right now. If you’re not in a position there’s no need to get into one just yet. If you are in positions, manage your risk accordingly – which could involve tightening your stops.
