The Liquidity picture of 2011 is now officially worse than it EVER was.
(We measure liquidity by simply counting the 90% breadth days in the S&P500 in a certain time window. When the market has only buyers and no sellers or vice versa then the market is illiquid)
The VIX_OSC seems rich already which comes from the 'too much, too fast' syndrome which is NORMAL in illiquid markets.
Indicator 2 has already flipped.
We knew that sth exceptional was in the making last week and so it happened.
Thanks for include a clarification of liquidity chart. If you add to the others charts it will help a lot. Cannot understand several charts in your blog and I'm sure other people do
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