S&P 500 Weekly Outlook Oct 03 - Oct 08

So we had a quite interesting week with another week of markets meltdown. Majority of the third quarter has been retraced to July Lows where we saw price finding support. The reason why I was and still am long with S&P is when you look at the VIX chart you’ll see where the smart money is hedging. Your attention should be focused on S&P the last lower lows where VIX did not create two last higher highs. This is classic hedging and accumulation of long positions by larger funds where both markets are closely correlated and diverge at the same time. Also all retail news and social media are screaming of markets Armageddon which is a perfect reason to be contrarian and looking out for large funds footprints. I’ll be expecting higher prices from the markets this week but we’ll see how it plays out.