Volumes have been exceptionally high since last Friday. Whether the spike in volume on Wednesday's final drop is capitulation volume remains to be seen.
We'll need to see price hold above the 1850-1870 level and continue to rally and hold above the 200 MA (pink) around the 1900 near-term resistance level on increasing volumes...otherwise, any further rally may simply be a dead-cat-bounce...particularly since we now have a lower low and the Daily uptrend has been broken.
Failure to hold 1850 may see panic selling enter this market...especially if the SPX:VIX ratio drops below the 60.00 level on increasing downward Momentum, as I mentioned in my post of October 15th.
