Depending on the market condition the CBOE Volatility Index can be conveniently be interpreted to fit the narrative of the day or the moment, but in this case I’d view yesterday’s declining trend as… 

The Dow has now extended its weekly losses to 7, but this could be the week that breaks that change of losses. I say that for several reasons… 

Stocks higher this morning. There’s an old saying on Wall Street that “When Time Magazine recognizes the bear market on its cover, that it’s time to buy.” 

Looking at the big volume days since March, they’re biased toward selling. Once this market finds its bottom, we could see a meaningful recovery — at least initially.

Given the market’s volatility and its delicate condition year to date, my daily commentaries have seemed more like a narration of the market’s action with a very near-term forecast. So today I’d like to project further toward the end of this year… 

The market’s unrelenting selling pressure continues. Even though stocks are higher this morning, investors will probably look at this skeptically since rallies have proven to be fleeting. 

Capitulation could be in the cards here, but I don’t think what we’re seeing this morning indicates that capitulation is imminent. 

It’s understandable that some could be skeptical about yesterday’s rally as it really came after the Fed announced its intentions to raise rates by 50 basis points. 

We could see a trading rally today and carry through the short run. I believe the Dow is poised to test resistance at the 34,000 level.