The week 31.08. – 04.09.2020

The chart this week shows a picture that we prefer. From market participants long awaited price declines have caused volatility to skyrocket. The VIX rose 28.6% this week, while the S&P500 lost 2.36%. Thus the VIX shows the immanent fear in the market. It could take some time for a normalization of the sentiment indicators and volatilities could remain relatively high. Unless the mass of small speculators, who have influenced the market psychology in an unusual way, continues to drive up prices. Many extremes have formed in the market as a result of excessive liquidity and unorthodox trading systems, and sooner or later these will be eliminated. The market remains, as always, very exciting. Actionist traders will, as always, have their teeth pulled out. Since one is much better off with the Easy-Trading approach of ONE SIGNAL_Smarter Trading.