Stock Market Technical Analysis Blog
Click on image to enlarge
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.