Remember, folks, this is what a post-crash environment looks like.
Thursday action does not indicate a healthy market.
I believe the rally -- the one that comes before the retest -- should last long enough and be enough to change sentiment, but so far the indicators haven't changed.
Just as in school -- and with solving the coronavirus crisis -- testing and retesting are necessary. It's also the answer to the market, because that's how stocks build bases.
Every move in the market appears to be shaking out weak holders, long and short.
When the VIX becomes 'expensive' that is a sign that things are calming down.
The VIX indicator typically shows higher levels when fear, doubt and uncertainty rise to a level of panic. That often subsides quickly, but not this time around.
Take a rest from the chart of 2010 to see some similarities from two peaks about 12 years ago.
The market is acting like it has resolved all the recent fears and worries, but that is far from the case.
If we go up at least two days in a row, we should finally be able to start some sort of bottoming process, starting with a rally.