Way too much range | FXStreet

S&P 500 presented opening bear trap and then ripped higher as called – just that breadth failed to keep up improving. NFLX for all the bullish positioning pre-earnings capsized, and took a meaningful dive. Well, and communications were among the leading sectors in this rebound off the late mid-Oct lows – so is the bullish case lost or not?

That depends on the following three charts – financials, junk bonds and volatility – shown below, with quite a few important observations left out for clients. Is the fear coming off XLF and KRE sufficiently following ZION and the rest? How about HYG, was that a meaningful daily stumble? And VIX, is that 17 level low enough to defend?