Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
… it’s a bona fide premarket selloff. Haven’t seen one in eons. Certainly not in 2012.
As mentioned Wednesday evening, VIX was suspiciously strong mid week, despite the grind upward in the indexes. That action in volatility continued yesterday. That said, the grind upward tossing aside the morning selloff ALSO continued for a 4th straight session, causing ever more frustration for those hoping to catch a mid day turn.
Also, as mentioned Tuesday Dr. Doom himself, Nouriel Roubini, announced his bullish intentions.
Nouriel Roubini bullish, with Gina Sanchez from his group saying, “We’re a believer; we’re celebrating. We think the rally has legs.”
Not sure why an economist is making market calls but his history in that regard has been quite interesting. Ritholtz posted this chart.
[click to enlarge]
Again let’s not make too much of this – we’re seeing a much needed minor selloff at this point from a market that was one directional and massively overbought. And has been for a few weeks. The S&P 500 has been riding the 10 day moving average for almost this entire move, so we’ll see if that is where we drift too. Until dip buyers get burned they will continue their Pavlovian response.
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