With the S&P at 1265.75 (day's low 1,262.26) and the DJIA at 11,974.31 I'm seeing way too much chatter about this or that index hitting a support level or approaching the danger zone or blah, blah, blah.
It was a week ago that we posted "Time to Attempt the Reverse Long Term Capital Management: Long Treasuries/Short Junk? (TLT; TMF; HYG; JNK)"
The TLT treasuries ETF is up 2.41% today and 5.2% in a week.
The short junk side of the trade has returned 1 to 1 1/2% depending which vehicle you used. 6.2% to 6.7% on the spread.
More importantly the VIX got to 25.25 a couple days ago, a 56% move since July 11's "A rare VIX pattern is appearing again ..." (VIX; VXX)' and (set caps on lock>fire) IS NOT REACTING TO TODAY'S DECLINES!
We'll have more this afternoon or tomorrow a.m.
Note: We've also more-than-filled the chart gap in July 22's "While MarketBeat Whoops it Up: "Nasdaq 100 Rallies to Highest Level Since 2001", I'm Biding My Time (QQQ; NDX)"