It will be interesting to see if the volatility picks back up as we head into a fresh trading week. Due to it being summer and many traders taking off later in the week, it makes sense why both volume and volatility subsided as the week came to a close.
Below is a chart of the Dow Industrial Average (note- charts of the 2 other major indices: SP & 500 and Nasdaq look similar). The question is now to determine whether we will rise higher into a rebound or continue our drop and move into the next lower trading level.
Another chart to take a quick glance at is the VIX or fear index. Similar to how we saw the markets bottom out last week, the volatility did as well.
I’ll still be keeping an eye on the same stocks in play from last week.
Also take a look at how to play this market, which includes the trading strategy I am using right now.