Markets were mixed throughout the day with the NASDAQ being the main index breaking ever so slightly to the upside. This does not convey a sense that the bulls are able to get a good grip on things. What we are seeing is another red flag that has consistently been connected with big drops in the market.

This has been as consistent a sign as any that we are heading into a bigger correction. Take a look at the cart of this ticker that is showing us trouble is brewing.

As markets increase their chop, certain indicators outperform the pack and help spot the ideal trade candidates to extract income from the churn. We are in that chop trade environment and this signal is popping up left and right. Take a look at how it has done for these traders here.

When the VIX jumps over 20 it is time to be constantly looking over your shoulder. It has been dancing with that key level for a while but has as much of a chance of breaking through that mark as any.

Since the VIX is made up of futures positions that traders are placing, it gives sense of what the market expects to happen. If it is rising, that means traders are expecting—and positioning for–a corrective move.

Tighten up your trades, lock in wins, and adjust your position sizes down to protect assets.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily