Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Friday, October 19, 2012

Sell Programs Triggered

Stock Market Technical Analysis Blog

Click on image to enlarge

Before anyone reads tonight's blog they should scroll down and read my Monday Oct 15th blog where I discussed that they must keep the market moving up this week and next week and if they had just one day of selling it could collapse everything as I explained it in detail in that blog.

Looking at the top row above, we see that the carefully executed red/green sentiment EMAs bounce at the beginning of this week was not kept going as was required to enable the week red/green 5/10 EMAs line bounce to start in the weekly charts in the second row above.  This lack of follow through triggered other events the first being the VIX in the top right corner chart which had its red line cross above its green that I mentioned several times would trigger widespread sell programs if it was allowed to happen.

Looking at the second row we can see that after today's selling we have a situation where if Monday's open is down and the market closes down, we will have a confirmed weekly bars red/green 5/10 down cross in AAPL, Nasdaq, and QQQ instead of the 5/10 line bounce they have been pushing hard to get started.  Looking at the bottom row we see that AAPL's blue / pink 20/50 down cross also was triggered today as I discussed in Wednesday's blog.  In the center chart of the bottom row we see that all these cascading events caused AAPL to slip through its red 108 EMA line, the great bull/bear line in the sand for all stocks and indexes.  In the last chart of the bottom row, the last result of these cascading triggers happened as the VIX broke out of its five month downhill channel and closed well out of it.

Oh Ben, where art thou?


Blog Archive