Closing of positions: confirmed rumors about what’s going on and there is a mass sale of shares and purchase of bonds, in order to rebalance the portfolio, which is dominated by long positions in the shares, which again is equivalent to pressing of oversupply.
Holidays: There is a lack of liquidity due to the Jewish holidays, which increases the pressure. S & P 500 exceeds the 20% average sales within 30 days.
High yield: Many traders are now trying to sell high-yield investment bonds as nearing the end of the quarter. Likewise, they did, and at the end of the previous quarter. Considering the lack of liquidity and the participants in the market, these vendors have switched to the sale of shares to hedge their positions against the risks.
Skew: Skew SPX today one of the highest in recent years, and that’s saying a mass exit of traders from the “put” option.
Volatility: VIX increased by 18%, showing the maximum daily gain since July 31.
Arms Index: Maximum intraday TRIN indicator 3 February indicates a pressure of oversupply.
Mood: AAII poll showed that “bearish” sentiment rose to a 7-week high, with the majority of investors have moved to “bear” the camp of the “neutral” and not of “bull.”
Levels of support for S & P 500: 1954.50 (100-day moving average), 1946-44, 1936