06/28/2016 Daily Commentary: Markets bounced today, after becoming very over-sold. The Fear Index (VIX) dropped another 20% today, indicating that the Panic Buying of Put Options is drying up.
If this is a Wave 2 down, (after completing Wave 1 from the Feb lows to Jun high), the target would be about a 62% retracement, to about 1930-1940 on the S&P 500. The Markets should go back down soon to re-test Monday’s lows.
Markets are tired. We would like to warn you: When Markets are tired like they are now, either take quick gains from Money Wave Pops, or STAY IN CASH & WAIT for a larger correction.