What a ride to the downside, but all will eventually comes to an end. VIX is a prime example of filling the gap then down she goes to fill those lower gap. Looking at the picture, it seems a lot of technical support have been broken. So medium and longer term probably getting bearish base on them indexes chart. After the high today, VIX have is foreshadowing a bounce in the market in the very near term, at least filling some of those lower gaps before going higher if the medium and longer term is in fact getting bearish. Hard to see anyone initiating any new short position at this level consider we almost drop over 100 points from recent high of ~1850 to ~1770 today. Chance is we either consolidate or bounce, before we may go lower.
Chart attack:
See SPX chart, nice volume to the downside again, MACD is also bearish still. Hugging along the lower BB and RSI level at near low is suggesting at the very least a bounce coming really soon
See VIX chart, RSI came back down today, chart made high and came back down quick, both is basically showing bearish in VIX in the short while. MACD is still showing bullish thought with no cross yet
See DIA chart, pretty similar to SPX chart, not a whole lot to say here. Last time RSI touch this low the DIA bounce for almost two months before coming back down to the middle point. So be careful if you plan to short the market right now
See NYMO chart, RSI record low again, so careful initiating new short position here, most likely we bounce soon, also riding along pass the lower BB is helping the bounce case. The MACD is still negative, so we may drop further.
Short term: Bullish (stop with today's low would be a good idea)
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