To summarize, here are the technical and sentiment indicators from Friday’s close:
S&P 500 is below its 50-day moving average and pointing down = Bearish
MACD (S&P 500; 19,39,9) is above the zero line but pointing down = Neutral
MACD (S&P 500; 19,39,9) is below its signal line = Bearish
S&P 500 support is 2,120 (100-day moving average), 2,050, and 2,000 (i.e. 10% correction).
II survey: (Sept. 6) 52.5% Bulls; 22.8% Bears = Bearish
AAII survey: (Sept. 7): 29.8% Bulls; 28.5% Bears = Neutral
VIX: @ 17.50 = Neutral
RSI: (S&P 500) @ 31.94 = Oversold
Comment: What a difference a day makes! It’s too early to proclaim a trend change as this could be only a one-day pullback. I used some cash to probe the market with SPY put options. I’m looking for clues, i.e. if volatility continues to spike, if there is an intraday reversal, and if market continues to sell off at end of day. Prepare to go long if selloff is extreme.