SPs and Nasdaq appear to be oversold, but look across all market indexes. Yesterday we posted weekly chart of the Russel. Bear market is in full force. Triangle formation is a continuation patern in a trending market. We did not know if bonds would make ABC down on daily charts, but they just took out the 5-day high here and are showing first signs of range expansion to the upside.
Trend line shows key old lows.
This is chart example of what we were looking at when we said Three pushes down in the Ticks - marked the lows. VIX reading of 35 marked panic point in the puts. VIX represents the level of implied volatility in the puts. It tends to rise when there is heavy put buying.