This post was just published on ZYX Short Change Alert.
The stock market is increasingly becoming volatile. Going back 30 years, high volatility is common after a sustained run and subsequent to appearance of reversal technical patterns. We have previously pointed out ‘outside day’ and ‘island reversal’ patterns to you.
The chart of DIA shows recent over 450 DJIA points swings. Yesterday was especially volatile. As shown on the chart, the market gapped down over 100 DJIA points, then filled the gap and subsequently fell back again.
Please click here to see the chart of the stock market
What To Do Now?
Those in SPY may consider holding the position but not adding at this time.
Those not in SPY may consider initiating a 10% tranche in the zone of $163.40 to $165.60 with the intention of adding more if the market goes higher.
