It's all in the details......

Latest:

 The Senate agreed to kick the can down the road two months and doesn't address debt ceiling breach.

Happy New Year

Alan


Regular blog post below

US Looks to go Over Fiscal Cliff - Market Rallies Big

Stock Market Technical Analysis Blog

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In light of the likeliness of going over the fiscal cliff, today they decided the best defense was a good offense and jammed the market higher using the AAPL 432 EMA line bounce technique they used on 11/16 & 12/17 that I called out on my blog posts on those dates.  Since they are not going to have the major positive event that would avoid the fiscal cliff, they are trying to put the VIX "cat" back in the bag by using the technique I described in the third paragraph of my Sunday night blog post.  

Looking at the chart above, today's drop in the VIX has already morphed the red line upcross back down to a pancake merge in just one day.  Everyone knows that when they spring AAPL off the 432 EMA line that short squeezes start on the broad market.  We'll have to see if they can put some legs on this one.

Alan

Sunday Post - Nasdaq - VIX

Stock Market Technical Analysis Blog

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In the Market Friday we had big index triangles waiting for a direction from the afternoon fiscal cliff meeting.  When it leaked that no new plans were presented the market sold off hard into the bell and in the aftermarket trading.

Tonight I am focusing on a four-year chart of the VIX, with Weekly bars and the sentiment EMAs applied.  Over the past four years anytime the smaller red EMA line crosses above the green line the stock market has sold down big for several weeks.  Tonight's closing of the the current Weekly bar, shows the upcross has begun again.  The upcross has happened three times in the past four years with each one marking the beginning of a couple of ugly months in the stock market.

As with any upcross on a Weekly chart, if there is an event in the following week that causes the price to reverse back down and close below the numerical value of the larger line at the close of the next weekly bar then the cross itself could be twisted back and possibly enough to morph the line cross into a neutral line merge situation going into the third week as happened in first quarter of 2011 and second quarter of this year.

Obviously, the only event of that caliber would be a real and genuine fiscal cliff deal being passed.

I am not holding my breath on that one.

Alan

VIX Sentiment EMAs Upcross

Stock Market Technical Analysis Blog

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In the Market today we had big index triangles waiting for a direction from the afternoon fiscal cliff meeting.  When it leaked that no new plans were presented the market sold off hard into the bell and in the aftermarket trading.

Tonight I am focusing on a four-year chart of the VIX, with Weekly bars and the sentiment EMAs applied.  Over the past four years anytime the smaller red EMA line crosses above the green line the stock market has sold down big for several weeks.  Tonight's closing of the the current Weekly bar, shows the upcross has begun again.  The upcross has happened three times in the past four years with each one marking the beginning of a couple of ugly months in the stock market.

As with any upcross on a Weekly chart, if there is an event in the following week that causes the price to reverse back down and close below the numerical value of the larger line at the close of the next weekly bar then the cross itself could be twisted back and possibly enough to morph the line cross into a neutral line merge situation going into the third week as happened in first quarter of 2011 and second quarter of this year.

Obviously, the only event of that caliber would be a real and genuine fiscal cliff deal being passed.
 I am not holding my breath on that one.

Alan

Intraday Market Reversal

Stock Market Technical Analysis Blog

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In the market today we had a big sell-off in the morning then a reversal back up in the last two hours.  At midday today, I sent out a number of tweets listing reasons why the market found support at that level.  Shortly after, the SPY rallied for a $1.75 gain into the final hour.

Looking at the first chart cluster, 60-minute bars, we see the sell-off in the Nasdaq in the morning with a reversal taking it back up into the horizontal channel by the bell.  The lower chart, VIX, we see the surge on up to the 21 level area that I discussed last night and  then at midday you see the 60-min, shooting star reversal bar as the VIX started falling back down from the 4-month uphill black line channel.  Note that it did close just above the center line of the 4-month channel which is actually neutral market-wise at best.  It will have to drop through that center line tomorrow if they want to have the rally continue.

In the second chart cluster, we see the reversal bar in the SPY and below that the reversal bar in AAPL as it bounced from its lower blue channel line at midday today.

In the third chart cluster, we see the upper six Weekly bar charts show little change in the Sentiment EMAs.  In the lower part of this cluster I added Daily candles charts of the Nasdaq, SPY, DOW, and XLF (Financial ETF) all showing Day long tailed  hammer reversal candles and all four have an either basis line or standard two deviation Bollinger Band envelope support.  The last two charts to the right show that the VIX and VXX both printed long tailed shooting star topping candles today.

In the fourth chart cluster first chart, the VIX hit the upper line of its 5-month uphill channel at midday today (which was one of my tweets) and fell well back down into the bell.  Chart 2 top row, we see that AAPL did not break its lows from last week.  Third chart top row, once again the market rebounded as AAPL touched down on its blue Day 432 EMA safety net line at midday today.   Second and third row charts, the short term channel charts, we see that AAPL, S&P, DOW, and XLF closed not far out of their short term channels at the bell, especially the XLF, with AAPL still hugging the upper line of its 4-week downhill channel.  In the bottom three charts, I posted an inner channel also being used on the VIX showing it tested a breakout but came back.  Second chart, VXX, shows an extremely long tailed reversal bar today.  Third chart, UUP, while it did break out of its downhill channel at the open, it came back down in it through the early afternoon and pretty much closed on the line at the bell.

All in all, everything is dressed up nice for a rally tomorrow but I am still holding to a neutral position (outside of intraday only option plays) because of two things in the above charts.  The first is in the top cluster, lower chart of the VIX which stopped falling and came back up a little as it hit the center line of the 4-month uphill channel in the last 30-minutes.  The VIX must drop below that center line tomorrow or this afternoon's rally was nothing more than a bounce off of multiple supports.  The second reason is found in the lower cluster, UUP (Dollar Index) where it did not stay down in the channel.  If it breaks out of the channel again tomorrow all bets are off.  We are still highly vulnerable to any and all news blips coming about fiscal cliff developments or lack of.

Alan

Indexes Lose Short Term Channels

Stock Market Technical Analysis Blog

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In the markets today we had another down day as the VIX continues to climb higher as market participants really don't like the way the fiscal cliff situation is unfolding.

In the first chart cluster, we see that the VIX gapped all the way above the stock unfriendly blue channel last Friday morning after the Boehner fiasco and with today's close it established the long term black line channel as being active again which could easily take the VIX up above 20.

In the second chart cluster, I've posted the long term charts of the SPY and AAPL.  Notice that the SPY slipped out of its 18-month blue uphill channel.

In the third chart cluster, the Weekly charts of the indexes with the Sentiment EMAs applied, we see that the Nasdaq and DOW have flatlined their two EMAs where it would not take much downward movement to have the smaller red EMA show below the green and trigger sell programs.  The most notable chart in that cluster is the VIX because it is starting to have an upcross which hasn't happened in about a year and a half and would also trigger big sell programs.

In the fourth chart cluster, top row, we see that the big triangle in the VIX I discussed about a week ago has broken out and heading toward the 22 level.  In the center chart of the top row, we see that AAPL continues to sag after having tested and failed at the underside of its gold Day 324 EMA line last week.  In the top row, third chart, we see that AAPL is almost down to its Day 432 EMA safety net blue line.  Also, AAPL is showing a bearish descending wedge pattern now.  In the center row, we see the Nasdaq, S&P, and DOW have all dropped out of their short term channels, but the XLF financials is still hanging on to its lower channel line while AAPL keeps trying but is still failing to break out of its downhill channel.  In the bottom row, the VIX does have an inner channel showing resistance where it is at right now which could possibly reverse it or we may have to go on up to the 22 level shown in the top left corner chart.  In the center chart bottom row, the VXX (VIX Futures) are running higher fast after being contained for five weeks in a small channel.  In the right final chart, the UUP (Dollar Index) is just a few pennies from breaking up out of its steep 6-week downhill channel which if it happens would cause havoc on stocks.

Putting it all together, the stock market is in a precarious situation right now.  It will be day by day for a while.

Alan

Thursday Night Part 2

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Boehner announced a little bit ago that they cancelled the vote on their plan as they realized they did not have enough votes to pass it.  Immediately after the announcement we had a 35 point flash crash in the S&P futures.  They have come most of the way back up now but there will be some very rattled traders tomorrow morning.

Alan

Weekly Charts Lifting Market

Stock Market Technical Analysis Blog

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In the market today participants grew more weary of the fiscal cliff situation as both the Nasdaq and VIX climbed today while AAPL sagged a little more.  Tonight I would like step back a little and look at the Weekly charts of six indexes with the Sentiment EMAs applied.  In the top row, Nasdaq-S&P-Dow, are all three starting a smooth orderly movement higher.  In the bottom row, the UUP (Dollar Index) and the TLT (Bond Index) are both turning downward inverse of the stock indexes in the top row as they should be.  The odd duck tonight is the VIX where we see that it has actually been climbing the past couple of weeks even as the stock indexes climbed which normally never happens.  What we're seeing is the elevated level of fear across the board starting to grip the market as we're still not seeing a fiscal cliff deal materialize.  It's possible the VIX may climb right along with the market indexes for the next couple of weeks as the market truly enters uncharted waters.

Alan

Indexes Have Channel Pullback

Stock Market Technical Analysis Blog

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In the stock market today we had a pullback in all the indexes from the restraining short term upper channel lines. 

Looking first at the upper cluster:

• Chart 1:  we see the slow sag of the Nasdaq from the restraint of the upper line of its blue channel. 
• Chart 2:  Last night the VIX was at the lower black channel line then by lunch today was holding tight at the lower line of the blue channel as the market traded sideways.  In the afternoon as the market started to fall, the VIX climbed up into the stock unfriendly upper blue channel.
• Chart 3:  We will see if the VIX green EMA will continue to suppress the smaller red EMA and keep the VIX in check or if the red will break above the green and cause some serious selling.  One other note is the huge triangle that has been building for the past three months that has obviously been timed to come to a point right at the Jan 1st fiscal cliff deadline.  Remember, however, that many symmetric triangles actually break out before they come to a point.  
• Chart 4:  We see that AAPL is having trouble with the gold 324 EMA line as it is now resistance until AAPL gets above it.  
• Chart 5:  The AAPL 432 EMA blue safety net line is showing we might be testing it again tomorrow or Friday.
• Chart 6 & 7:  the week and day candles of AAPL

Looking next at the lower chart cluster, we see the big blue dominant channels for both SPY and AAPL.  At the lower right there are 6 index charts showing the short term channels and the pullbacks we had in the Nasdaq, S&P, and XLF.  AAPL traded down today but did not reenter its steep downhill channel.  The VIX is threatening to enter the upper half of its three month uphill channel.  The VXX (VIX Futures) is threatening a channel breakout tomorrow that could bring enough selling to bring the indexes back down to their lower short term channels on Friday.

Alan

The Lift Continues

Stock Market Technical Analysis

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We had another big day in the market today off last Friday's AAPL 432 EMA pivot.

Looking at the charts above:

• Chart 1:  Nasdaq shows we may have a sideways or pullback day tomorrow as the Nasdaq has reached its upper line of the its dominant short term channel shown with blue lines.
• Chart 2:  VIX is also reflecting the same thing as it has reached the lower line of its short term dominant channel.
• Chart 3:  We see the follow thru on the VIX of the red EMA being pushed down from the green EMA as I discussed last week.
• Chart 4:  AAPL will get its first test tomorrow as it tries to cross back above the gold Day 324 EMA line.
• Chart 5:  AAPL shows the blue 432 EMA safety net line I discussed in last Friday's blog.
• Chart 6:  Weekly candle of AAPL
• Chart 7:  Daily candle of AAPL
• Chart 8:  Intraday of AAPL showing a $15 gain today on top of yesterday's $20 gain.  Anyone who was ready to buy yesterday morning when the pivot started to the upside has banked $35 on AAPL in two days.

Looking at the lower cluster above, the top left chart shows that the SPY is well on its way in its year and a half blue line uphill channel.  The lower left chart shows AAPL is rising nicely in its 10-month downhill blue line channel.  Note however, that it will have some resistance at the 550 level which is the upper line of its multi year black line channel.  

Taking a look at the three right side charts in the lower cluster where I have drawn the short term channels we see that it's likely that the Nasdaq and S&P will have pause tomorrow at their upper short term channel lines.  AAPL in the bottom chart actually broke up out of its 3-week downhill channel today.  

Tomorrow we will be watching to see if today's breakout in AAPL causes the Nasdaq and S&P to only go sideways and not down or whether the Nasdaq and S&P's upper channel line restraints will slow the AAPL rally.  It really could happen either way but it's likely to be influenced by any new developments in the fiscal cliff talks that emerge tomorrow.

Alan

AAPL Lifts the Market

Stock Market Technical Analysis Blog

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Following up from Friday's blog, AAPL tested the safety net 432 EMA line in the premarket this morning and ripped higher through the day for a $20 plus gain from the premarket launch and lifted the market for a huge gain.

Looking at the charts above:

• Chart 1:  Thr Nasdaq regained the horizontal channel and made its way to the blue incline channel.
• Chart 2:  The VIX slipped out of the stock unfriendly blue channel.
• Chart 3:  The VIX's green EMA prevented the red from crossing above as it did two weeks ago.
• Chart 5 & 6:  We see bullish reversal candles on the week and day of AAPL.
• Chart 7:  AAPL's bounce today from its 432 EMA line.
• Chart 8:  AAPL's intraday run from 500 to 520.

Looking at the lower cluster above:

• Top chart:  SPY bounced up from the lower line of its 16-month uphill blue channel today.
• Lower chart:  AAPL bounced up from the lower line of its 10-month downhill blue channel.

If you follow my tweets, midday Friday I tweeted that I was expecting a breakthrough in the fiscal cliff negotiations today.  I knew it would be ideal for such an announcement to be timed with a big market lift point.  Today we had multiple breakthrough announcements.

Alan

AAPL

Stock Market Technical Analysis Blog

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In the stock market today we saw the slow meltdown continue from the weight of AAPL.

• Chart 1 Nasdaq:  saw it slip out of the horizontal channel but came back up in the last hour.
• Chart 2 VIX:  continued up into the blue channel but in its fifth 60 min. bar it became overextended and closed with a 60 min. shooting star candle.
• Chart 3 VIX:  we see the red EMA has come back up to the green where it will either cross above Monday morning or start turning sideways underneath it to end the sell off as it did last week.  This outcome will have a big effect on the market.
• Chart 4 AAPL:  we see that the red 5 crossed down thru its gold 324 at the open which immediately drew two downgrades from bull-side AAPL analysts.
• Chart 5 & 6 AAPL:  the day and week candles, we see that both are back down to the lower bollinger.
• Chart 8 AAPL:  showing its Day 432 EMA line.  

The really important charts tonight are 4 & 8.  In chart 4 the Day 5/324 EMA juncture is the strongest reversal point in technical analysis and when it is lost as it was today many people bail on the stock.  Wall Street does keep a backup line to give themselves a second chance to turn the stock back up when there were just too many sellers at the 5/324 juncture.  This backup net is a single line, the Day 432 EMA that is shown in blue in chart 8.

Note that back on 11/16 the 432 safety net caught the bottom tick and reversed AAPL back up and the entire market.  The invisible net is there but it requires commitment across Wall Street for it to hold.  Monday morning we will find out if Wall Street commits to it or if they themselves are bailing on AAPL.

Alan

All About AAPL Tomorrow

Stock Market Technical Analysis Blog

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The stock market had a slow motion meltdown today as everyone was in AAPL watch mode.  Chart 4 above is the only thing that means anything in that tomorrow AAPL's 5 either crosses down thru its 324 or starts to show lift.  Whichever way AAPL goes the next few trading days, the broad market is not likely to be far behind.

Alan

Neutral Market Close

Stock Market Technical Analysis Blog

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The biggest thing in the market today was Bernanke's ramping up of QE3 with increased visibility.  The market's first reaction was positive and it rallied but after further analysis the sentiment developed that the only reason that Bernanke would have gone a step further in the free money program is that he knows we may be heading into a recession the first half of next year.  Stocks pulled back to pretty much neutral into the close.

Looking at the charts above:

• Nasdaq, Chart 1:  I applied longer term channels to get a bigger view.  It shows the resistance the Nasdaq has had the past couple of days but also note we closed with a hammer candle being supported by the center line of the horizontal channel.  

• VIX, Chart 2:  Also closed neutral, it may drop back into the stock friendly channel at the open or it could start the move back to the high channel.

• VIX, Chart 3:  The large EMA pushdown was a little overdone yesterday causing the VIX to pull back up some today but no indication for tomorrow. 

• AAPL, Chart 4:  Following up from last night's discussion of the day 5/324 setup they are constructing, today's sag in AAPL helped the 5 EMA line continue to construct a dish pattern of the line itself which is what technicians want because it implies a sustainable upward move but beware that when the 5/324 are compressed it would not take much bad news premarket to start the tip of the 5 down through the 324 which would trigger big sell programs.  If AAPL starts gradually rising tomorrow and a little more the next day then the dish will complete and AAPL will have its double bottom in to go higher thereby pulling the market up with it.  This will be a close one.

Alan

We Have Lift

Stock Market Technical Analysis Blog

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In the last thirty minutes before the bell yesterday I tweeted that a strong setup on the Advance Decline had developed and today we saw the results of it with a big move up in the market.

• Chart 1 - Nasdaq:  big move up today and established new uphill channel
• Chart 2 - VIX:  dropped down into the stock friendly lower channel at the open today 
• Chart 3 - VIX:  the large EMA pushdown continues to send the VIX lower
• Chart 4 - AAPL:  I was hoping for a large drop and reversal back up today to produce hammer candles on the week and day plus to get the  pinpoint 5/324 retest bounce.  They instead decided to just go ahead and launch the move at the open and rely upon the bullish double prong price pattern that completed prior to today as the accompanying driver.  This is also a strong setup just not quite as strong as twin time view hammers.  There is an advantage to this approach in that it causes the 5 EMA line to approach the 324 at a gradual angle which causes a more sustainable rally in the long run but not the multiday explosion like back on the Nov. 16th   5/324 bounce.  If they let tomorrow basically be a sideways day then they will have themselves positioned to construct a dish pattern in the 5 EMA line itself which typically produces a much longer run than the 11/16 rally especially if the bottom of the dish curve makes pinpoint contact with the 324 which could happen tomorrow or maybe more likely the next day.  A dish pattern in a small moving average implies a smooth gradual transition from mostly sellers to balanced buying and selling then to mostly buyers.  After they have completed construction of this 5/324 double bottom setup they will have a much stronger hand in moving this market higher.

Alan

Broad Market Continues to Improve

Stock Market Technical Analysis Blog

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In the stock market today we saw another day of slight improvement in the technicals that were shown in last night's blog.  Tonight I would like to focus on the Nasdaq, VIX, and AAPL.  

• Nasdaq Chart 1:  We see that we are starting to shift to a slightly uphill channel over the past few days.
• VIX Chart 2:  We see the continual decline of the VIX as it is getting closer to the lower stock market friendly channel.
• VIX Chart 3:  I've applied two fairly large key EMAs showing that a red / green pushdown situation has developed which is bullish for stocks.
• AAPL Chart 4:  Back on the 16th we saw a huge purge as AAPL's red 5 EMA caught and bounced from its gold 324 EMA line.  They are obviously trying to work the same setup again for a 324 double bottom.  On Nov 16th we kicked off a huge multiday move from this setup but to have the play happen again we have to get a hammer candle on both the day - chart 5 and the week - chart 6.  Today's candle on the day and week are both spinning tops.  In order to produce a bull reversal hammer on both the week and the day they have to let the price bar drop well below the 324 line right as the 5 comes into contact with it then in the afternoon of the same day bring it all the way up to slightly above its opening price so that they produce a day and week reversal hammer candles without letting the 5 slip below the 324 EMA.   The first time back on the 16th it was free money on a stick, this time though AAPL has the pressure of a 50 / 108 pushdown and also the weekly sentiment EMAs in a pushdown as I showed on the 12/5 blog.   If they can pull this off a second time with AAPL under new pressure they will have the winds at their back for a Santa rally.  The bears are going to be on their toes this second time, they really don't want to see AAPL successfully complete a 5/324 double bottom setup.  The bulls could try to make it happen tomorrow or it could be the next day.  It is important for AAPL's chart that this happens, if they can't pull it off AAPL could suffer a day 5/324 downcross which will be a huge Xmas present for the bears.

Alan

Broad Market Improving

Stock Market Technical Analysis Blog

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In the broad markets we saw a slight improvement Thursday and considerable improvement in the technicals on Friday.  In the charts above in the top row the S&P 500 is beginning a red 5/ pink 50 EMA lift.  In the DOW (top center chart) we see it beginning a pink 50/ rose 108 EMA lift.  The XLF in the top row third chart, we see it in the third day of a red 5/ pink 50 EMA lift.  Looking at the two lower charts, the Nasdaq is having trouble underneath the pancaked pink 50 and rose 108 EMA lines while AAPL is struggling to hang on to its gold 324 EMA after a major rescue of losing the line on Thursday.

As long as APPL's 5 EMA doesn't slip through its gold 324 EMA line it can continue to hold in this area without problems.  The Nasdaq, however, desperately needs AAPL to firm up support at its 324 and start rising from it while the Nasdaq red 5 is still close enough to the pancaked pink 50/ rose 108 to jump back above it from an AAPL short squeeze.  If all five charts get in sync from another rescue play on AAPL we are likely to see the Santa rally begin.  If AAPL loses its 324 line convincingly then the Nasdaq will be in real trouble as a pink 50/ rose 108 pushdown will begin for it.  This could produce a rare market divergence where the S&P and DOW and XLF are all on solid ground, climbing higher and the Nasdaq and AAPL are going down the chute.  Very little market history on how that would turn out if it continues.

Alan

AAPL RESCUE

Stock Market Technical Analysis Blog

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In the premarket trading today, AAPL slipped through its Day 324 EMA line shown in the left chart above.  Shortly after the open this morning AAPL dropped down to $519 where I immediately tweeted that if they did not step in and rescue AAPL,  its decline would have only just begun.  About ten minutes later they did step in and ran AAPL up $35 over the next hour from $519 to $553.  The AAPL 555  Calls were $3 when I tweeted how the rescue must happen here in the chart and they were at $12.35 approximately an hour later when AAPL was $35 higher for a 400% plus option gain.  While I had to leave my computer for the day shortly after my tweet, hopefully some of my followers caught the play.

Alan

AAPL

Stock Market Technical Analysis Blog

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I am skipping over the broad market again tonight as today as it was another day of propping, a little more successful than yesterday. 

Last night I sent SMV OptionAlert subscribers another Day 50/108 option play of the same setup as yesterday's NFLX winner, but today it was a Pushdown 50/108 on AAPL, shown in chart 1.

After the open AAPL 540 Puts were priced at 0.46 for the entry and closed at 8.80 at the bell today for over 1500% intraday gain.  Just as soon as the 50/108 pushdown began this morning we had a second major bearish setup begin, the weekly SMV Sentiment EMAs pushdown shown in chart 2 which I have focused on many times in recent months.  

The combination of the two SMV alerted signals took AAPL down $37 as is shown in the intraday chart 3 and caused AAPL to drop through its Weekly 50 ema line shown in chart 4.

The stock market media suggested AAPL's drop today was from announcement of increased margin requirements.  The reality is that margin requirements were raised because of the peril that AAPL is now in from the double pushdown set up that began today 

Alan

NFLX

Stock Market Technical Analysis Blog

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In the market today we continued the back and forth grind of a heavy market being propped up diligently as shown in the lower chart cluster.  

Rather than rehash more of the same tonight I would like to focus on today's NFLX play.  Last night I emailed SMVOptionAlert subscribers of the Day 50 EMA / 108 EMA pancake setup that was ready for the pinpoint price bounce play.  After today's open the NFLX 85 Calls were in the $0.30 range and closed this afternoon at $3.40, over a 1,000% gain intraday.  

MarketWatch posted that it was because of NFLX getting exclusive rights on Disney movies but the charts told us that the play was today and the news was cut and pasted onto it.  The agreement may have been made days or weeks ago.  

I also have a green mark on the NFLX chart back on 10/31 where on that date it crossed above its 108 EMA for an option gain that dwarfed today's gain.  The stock news media on that day cut and pasted the news that Carl Icahn had bought a 10% stake recently as the reason for that move.  

The big plays are from the technical analysis.  The news, good or bad, is prepared and ready to be released when the technical analysis says the play is here.  Both 108 line interactions were free money on a stick on NFLX.

Alan

Bearish Market Close

Stock Market Technical Analysis Blog

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This morning at the open we did get our move up in the stock market with the Nasdaq actually hitting its top channel line right at the open.  This quick move was not liked by the market because nearly all gaps and quick opening moves have been sold down hard recently.

Looking at the charts 1-3 above we see that the SPY, QQQ, and the XLF all crossed above their restraining 50 day SMAs this morning but as the market pulled back through midday they all 3 slipped back below, a substantial technical failure.  What caused the selling to continue thru the day can be seen in chart five of the VIX where immediately after the open the VIX reversed and took off toward the higher blue line channel which has been very stock market unfriendly.  

Toward the closing we had two bearish events, the first being that the bullish ascending wedge pattern they have been building on the 120 minute chart of AAPL, shown in chart six which actually tried to break upwards at the open but pulled back is dangling on the verge of failure as it approached the very point of the wedge at closing.  Whichever direction that AAPL goes at the open tomorrow will be crucial.

Lastly, in chart seven we see that the VIX crossed back above its 50 day SMA in the late afternoon, an unfriendly place for stocks also.    Barring a 4am intervention which I will show tomorrow night if they happen to do it,   caution should be taken here.  

Alan