Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Tuesday, May 10, 2011

VIX drops today...5/10/11

Stock Market Technical Analysis
Click on above image to enlarge

With this morning's open the VIX dropped through the blue line in the lower chart for a buy signal on the broad market.  Volume was low today as people can see that the SPY shown in the upper chart reached its upper trendline in this first day of the move.  Some may short here and if WallStreet wants to squeeze them the SPY may break above its upper brown channel line as it did a couple of weeks ago.  Normally setups of this type are good for 2-4 days of upward trading but tomorrow the market is likely to go sideways at the upper brown line until we see if it can pop above it again.

Alan