Volatility Takes A Hit or The Return of Blind Faith & Complacency

The recent beloved pattern of “If it’s Tuesday the Markets must be Higher!” remains in place for now.  Although the DJIA and S&P 500 were unable to hold higher ground the NASDAQ 100 and Russell 2000 did.  The Russell 2000 (RUT) pushed to additional new highs on Tuesday surging over 17 points intraday.  This is basically a 1% move, which is notable for several reasons.  The percentage intraday move was larger than what was seen in the DJIA, S&P 500 and NDX.   Giving support to the migration into small cap stocks having picked up momentum More Mom & Pop investors who continue to search for higher returns against a decaying backdrop.  The S&P 500 (SPX) pushed down to 1687.50 before starting what should ultimately be a quick rebound rally.  Resistance for this type of move remains at 1703, 1708, and then 1711.  A break above 1712 should clear the path for an attempt at the 1727 to 1735 area. A break below 1687 may usher in the next leg down within the context of a larger cor

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