Moving market today - equities, VIX, the dollar and more

The market's been moving quite a bit today and in this environment, I am not so sure that traders should really be surprised. I showed yesterday that the VIX was getting extended far down. This morning it continued that path, as the dollar tumbled lower and gold was up (but not getting to new swing highs). We have been keeping an eye on key factors and recommending readers do the same. Here is a quick overview of those:

The dollar, as well as US Treasury bond prices (which we keep track of conveniently with TLT) have been moving lower, and that's an expected movement for which we've provided likely targets. Unless they break support at the prior important swing lows, it doesn't signal that we've moved into a "hyperinflation" scenario. I don't see that such support was broken today.

At some point we expect VIX as well as the dollar and bond prices to find support and move up. We may have to determine this from chart action, if the levels don't quite meet our target levels.

Gold is one of our "tells" and we don't see it looking bullish unless and until it breaks to new swing highs, obviously going above 963 is the first important level.

The banking and transportation indices are also important for us and we don't see our current skeptical viewpoint on the broad equities markets changing unless these are able to break upward to new swing highs. I like the action in the biotech index and want to start more close coverage of that in the future - but that is a separate point.

Traders have the flexibility to move in and out quickly, which is what's necessary for this environment. If you do not have that flexibility, then sit back! Even Raymond Merriman gave us a heads' up about this in his weekend comments. He said focus short-term, and be happy (being happy is never bad advice)! Don't trust too much information that's been debated in various corners, stick to what you know. It may take us another week or two to get through some chop in this market, then we will be able to look back and laugh and have a clearer idea about what's going on with this market. I've got my theories, but it almost doesn't matter. Price is the ultimate indicator, as they say. So we'll use our "tells" or signals as I've been describing, and those should be good guideposts for navigating these markets.