Stock Market Technical Analysis Blog
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In the market today the VIX continued a little lower as the S&P hit another new five year high.
- Looking at the upper cluster first we see that the VIX line pushdown we have been following for a week now is continuing to push lower allowing the S&P 500 to continue higher.
- Looking at the middle cluster with the thirty minute bar charts, we have a more focused view of the declining VIX and the corresponding rising of the S&P.
In the lower cluster of charts, there is a row of four Monthly bars charts: the XLF, S&P, Nasdaq, & QQQ with standard 5 and 10 EMA lines. We can see how the XLF (large financials ETF) is leading the rally and then shortly after the S&P started its 5/10 lift, then after that the Nasdaq started its 5/10 EMA lift and right now the QQQ is just beginning its month 5/10 EMA lift.
Directly below that there are quarterly bars chart of the XLF and a monthly bars chart of the Nasdaq (COMPQ), both of these have huge ascending wedge patterns.
The XLF ascending wedge has already begun to move higher.
The Nasdaq's ascending wedge is ready to start its lift which it should as the QQQ monthly 5/10 EMA lift starts gaining steam (shown right above it).
Putting this all together, the technicals on this market are pointing higher, possibly a lot higher throughout this year.
Trade well my friends,Alan