Today is the 2nd day CD Micro came back below 40% which is a confirmation indicating a clear "release" of market participants. At market close our indicator for the short term outlook "CD Micro" shows 36%.
Looking at the detailed table we can clearly see which factors are driving the overall score and where risk still remains:
AD ratio NYSE came back dramatically indicating strength in value stocks.
VIX range and slope came back indicating de-risking in short and long term positions.
Insider are buying again.
However, the VIX percentile rank and the options market is still indicating strong hedging behavior.
Tech stocks (NASDAQ) did not recover as value did confirming a trend towards more secure positions.
The data predicts a quiet market for the upcoming days proceeding in a range or a slightly bullish direction (value preferred over tech).
We opened options positions (short put spreads) in S&P500.