Market Update August, 6th, 2019 $VIX tops out

Yesterday was kinda hectic. I lost internet in the afternoon, after putting an annotation that I was charting in real time, and I never found the time to finish "Part 2", of  yesterday's blog. Shit happens.

We saw a decent washout yesterday, with the Dow losing 700 points (3%), and that's about what I expected... but we never did see velocity increase exponentially, and after only 3 big down days, I can't seem to find a bearish channel.

What I am seeing is a very orderly looking $VIX pattern. $VIX never got above 25, so fear remains contained, and buyers stepped in at the 200 day moving average on the $DOW.

The 200 day on the $SPX is 2790 and rising, but I don't see support @ 2800 breaking any time soon.

I think we're going to go back and retest the 2955 level (around 2959-60), and then maybe come back and retest this level in the fall, around the Brexit deadline.

Since emerging market we hit hard, and not Oil, the catalyst for this sell-off was the Fed, and that was accentuated by the shut down of Hong Kong, and the Pentagon planning to put missiles in Asia. China is oversold, so watch for a big snap-back rally there.

There is a lot more I could go into, but I want to get this chart up before the opening bell, so I have to cut this short. Watch the public charts!

GL, AA

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