As many have already pointed out, the markets have experienced unprecedented oscillating volatility this week with 4 consecutive 400 point days (2 down, 2 up)in the $DIA accompanied by extreme breadth (2 90% up, 2 90% down).
My expectation is that on this Summer Friday, we’ll see relatively muted action with the intraday range less than half of the average of the previous 4 sessions.
It is a matter of pace and rhythm really. A sprinter can only sprint for so long before he must rest a bit.
So we will likely get a respite day and volume will dry up as the day progresses and on the surface, things will look less abnormal.
Sure, take a few deep breathes, relax a bit and enjoy a well deserved Corona con lima this evening.
But don’t let the apparent return to normalcy and a bit of well earned benign complacency bleed over into next week because we’ll likely get more big swings…
$SPY
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