The S&P 500 index reacted negatively to the threat of 100% tariffs on China, an event that continues to affect the market. While overall volatility has clearly increased, the index is holding above a strong support level between 6,500 and 6,550. A drop below 6,500 would indicate a significantly more bearish outlook for the market.
Separately, the U.S. stock market’s sharp decline on October 10 triggered a new McMillan Volatility Band (MVB) sell signal. The increased realized volatility from that drop has caused the bands to widen considerably, meaning a new MVB signal is unlikely to occur in the near future.
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