Stock Market Technical Analysis Blog
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Today the market was sideways as an incredibly powerful support was put under the stock market. We may have to just never mind the fact that they hopped over the last four barriers as today's show of force in not letting this market drop was actually quite impressive. Their biggest problem in getting this market higher before the fiscal cliff deadline is the 50-day simple moving average that has been resistance on the SPY for two days, resistance for XLF for four days, and became resistance for the QQQ yesterday, as shown in the three left side charts above.
On the right side charts above, Nasdaq & VIX, we can see the extremely tight tractor program they have had on the market since Monday 11/19. Keeping the market contained this tightly improves their ability to keep a flash crash from happening over fear of the fiscal cliff but it makes it quite difficult for successful two to four day swing trades as fewer and fewer traders are willing to hold overnight.
Nonetheless, looking at the VIX chart if their tractor program continues to hold then Monday should be an up day if the VIX pushes down from the green line. The problem is that the VIX will likely be down to the red sell line by the end of the day. They just might keep tightening the range to get an even firmer grip on the market as the fiscal cliff approaches.