Never Seen Anything Like This Before

DPR Update:  Staying flat, no buy signal

I have witnessed volatility before, but never in my investing or trading life have I ever witnessed the points move in the futures and indexes that I saw in the last 24hrs or so.

It seemed that every 1 minute candle was averaging 5+ points in the S&P 500.  WOW!  Particularly last night; as I watched the S&P 500 E-mini futures fluctuate after hours in unprecedented moves up and down.  It was breathless stuff.

I suppose the headline last night of the DOW Jones having it’s biggest 1 day drop ever in it’s near 130+ year history is attention grabbing indeed, but it pales in comparison to 1987 and others in terms of % move.  It’s simply a reflection of the size in points value at least of the indexes now that we can have these huge point swings when volatility comes back.  So if the DOW gets to 30, 40, 50,000 points over the next 10 years, what kind of swings can we expect?  Wild stuff!

So what now?  And what next?

Prediction has never been something I have hung my hat on, but I suspect tomorrow we will see an inside day in the S&P.  It went down too far and too fast due to the panic, but then today it bounced back too quickly, so it is more likely to have a bit of a pause before deciding where to go next.

As I am flat and waiting to get back in, my hope is that we will see some more selling and even a new low in the indexes.  That would be the worst thing that could happen to most market participants, so that means it has a high probability of happening first!

I am looking for a new low or at least a re-test of the 2600-2650 range in the S&P 500 Index in the coming days. …But we don’t always get what we want!

Crazy market!

John