Market Outlook – Continued downward pressure shows traders the edges of deeper support in the overnight and a test of 3880 and below, before a feeble bounce we see here. Levels of support just below us are 3831 and 3805 – 100 points lower than yesterday’s support levels. Intraday volatility continues to rise – The VIX still sits in benign territory. A recent report I saw suggests that the intraday volatility is being exacerbated by the diminished flow from institutional buyers and the increased flow from the gamma traders. Liquidation break is on the horizon says, Cem Karsan, of KaiVolatility – but pinball trading ahead for the next 6 months.
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