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As I mentioned over the last couple of days: with volatility at these high levels, we should be ready to strong and sudden swings. High Volatility always have been a sign of mid- and longer-term bearish mood. On Sunday in my "Side Way Trend on Indexes" post I have pointed to the few signs that suggest dominance of mid-term Bears. Lets see if they will be able to break the low seen on November 16, 2010 on the S&P 500 and Nasdaq 100 - DJI's low was broken yesterday. Or it will be another session of strong swing at the morning and then side-way trading for the rest of the day (as we had over the last two weeks).
US Dollar index is up, and it looks like nothing will hold it from moving higher to the August 2010 levels. Stronger dollar is another force that support bearish trading.
I'm moving from 15- and 30-min harts to the 5-and 15-minutes time-frames. One of my rules is to lower time-frame on higher volatility or reduce bar period settings.
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