October 2014 and August 2015 Lows are Creating more Volatility

The Russell 2000 small cap index breached both lows in the past six trading days. On the other hand the Dow, S&P, Nasdaq and the Financials are churning above those lows, the Nasdaq well above.  This is and will add a certain amount of volatility for now.  Ironically a single major stock, Apple, is one of the closest to breaching a significant low on a close, 95.18.

Another couple of things to watch now, are the dollar and T-Bonds.  They are running into resistance around the March 2015 highs.  If stocks are going to blowout to the downside I would expect the dollar and T-Bonds to start a push out to the topside.  So far that is not happening, probably tied to random talk about the FED reconsidering their rate hikes.

And then you have Davo’s next week, a time when the big guys weigh in with comments and stories.

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