Strange patterns in the market continue. Gap Continuation and Reversals happen on a daily basis now and a 17 point reversal in the VIX from last Friday's high amidst incomplete election results and high Covid cases.
There are time periods when the bulls just press the market higher no matter what. When VIX drops this quick, you wouldn't expect there to be such wide ranges intra-day.
I'm having second thoughts about a strong bull once we get election resolution. I am looking at the megaphone pattern in the market and anticipating a potential sell off once the euphoric bulls are done buying.
Volatility happens at turning points and while the VIX might reflect decreasing volatility in the market, the market has been very volatile based on the wild swings and ranges.
This type of market continues to be challenging in the stock indexes. The Nasdaq and Crude Oil were the highlights of the day. Gold had some good trades as well on SR CounterTrends.