A few quick words about investor sentiment and the Elliott Wave implications. Recently bullish sentiment was extremely high which helped mark the B wave top, even though we don't have full confirmation yet (just increasing confirmation in sectors like banking). Now sentiment has improved - what does that mean? In Elliott Wave theory, C waves and third waves share the trait of "recognition". Meaning we don't need to see sentiment spike to extremes for spotting rallies to sell. Also we're looking for a wave 2 to top and then a wave 3 (although I'm considering it will be a wave 3 of the larger-scale first of C). It means that as this wave 3 kicks in, we should expect sentiment to get bearish. Finally we should expect more of a bearish extreme at the bottom of the wave 5 that completes C's first wave.
The VIX did spike over 30 but came back to 24. That should be support with both MA's and the BB (Bollinger Band) midline. So if you're playing VIX, look for that support and see if it seeks out that upper BB.
When we get to the C wave's third wave down, that's when we should expect plenty of recognition and bearishness. So just keep in mind that not every bear or bull extreme has equal significance. The Elliott Wave context helps to know how to interpret it. Below is the SentimenTrader gauge (which Andre Gratian often references). There's also the ISEE and COT data which you can find at the right side of the page here. Along with the "max pain" calculator in that lust, which I recommend using especially when near opex (ie, after this upcoming Tuesday/Wednesday).
There's also evidence that mutual fund cash levels are at an extreme not seen since 2007, according to Steve Puetz, the Unified Cycle Theory author and analyst. That's a type of sentiment that can't fluctuate as quickly as measures like buying-to-open puts and calls.
I'll elaborate more if I have time but that's the heart of it. (Still have family medical matters + sailing to attend, so rather stretched these days.)
The VIX did spike over 30 but came back to 24. That should be support with both MA's and the BB (Bollinger Band) midline. So if you're playing VIX, look for that support and see if it seeks out that upper BB.
When we get to the C wave's third wave down, that's when we should expect plenty of recognition and bearishness. So just keep in mind that not every bear or bull extreme has equal significance. The Elliott Wave context helps to know how to interpret it. Below is the SentimenTrader gauge (which Andre Gratian often references). There's also the ISEE and COT data which you can find at the right side of the page here. Along with the "max pain" calculator in that lust, which I recommend using especially when near opex (ie, after this upcoming Tuesday/Wednesday).
There's also evidence that mutual fund cash levels are at an extreme not seen since 2007, according to Steve Puetz, the Unified Cycle Theory author and analyst. That's a type of sentiment that can't fluctuate as quickly as measures like buying-to-open puts and calls.
I'll elaborate more if I have time but that's the heart of it. (Still have family medical matters + sailing to attend, so rather stretched these days.)
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