Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Monday, May 23, 2011

The good, the bad, and the ugly 5/23/11

Stock Market Technical Analysis

Click on above image to enlarge

First the ugly, today's trading was worse than ugly.  An avalanche of sellers piled in around 1:30pm today.  The bad, we dropped through and closed below the SPY's steep black channel and the orange shelf line going back 3 months.  Also, the UUP had a big gap up premarket.

The good, today's bottom did catch two other channel lines - the light brown channel in Day SPY chart at the top right and the light brown secondary channel in the 120min bar chart of the SPY in the top left.

A neutral angle on the picture is that after the VIX gapped open at 20 and fell it ended up closing right on its upper brown channel line leaving it sitting neutral for the open tomorrow morning.

If there is going to be a QE3 announced, tomorrow morning would sure be a nice time to do it.

Alan