We’ve reached the rubber band is stretched phase. It’s the phase where it looks like this market is never going to decline. Think about the downtrends we’ve seen the last few years. We get a relentless move down, a bounce and then another move down and it feels like it’s never going to turn. Then it does. Looking at things on Sunday night it’s starting to have that feel. But we haven’t tested 1576 yet. Last week’s burst in the VIX was a 39% rise which created some time and allowed the bulls a little more fuel.
Even if it goes higher from here, with the VIX as low as it is, I doubt we could get a sustained push from here. Risk is extremely high.