Today the Nasdaq gained over 5% on increased volume on the 5th day of its rally attempt which marks a follow-through day in one of the major index. However there is no leadership to be seen anywhere which makes me outright suspicious of this rally.

Today’s reversal had all the ingredients to set up for a nice trading rally. Also of importance was the spike in $VIX (fear index). It spike to above 80 and that is a sign of some extreme bearishness.