Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Thursday, September 5, 2013

Critical Point Getting Close

Stock Market Technical Analysis Blog

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In the market today there was a quick pop in the first hour to see if they could get the S&P price bar to cross above the orange and brown lines in the top chart.  The price bar must cross above the lines before a lift can begin.  The opening pop failed to take the S&P price above the two lines and it started retreating wherein they immediately placed a tractor program on the index ETFs to keep the market locked down in a very tight sideways range the rest of the day which did help the VIX to retreat a little farther away from the 432 line shown in the bottom chart.

Ideally, in the last thirty minutes they would have broken the S&P upward for a quick short squeeze into the bell.  Unfortunately, we got a little bit of a sell down in the last thirty minutes which has fairly negative implications.  The S&P really needed to close at the high of the day.  

Looking at the positioning of the orange and brown lines we can see that the Friday thru Tuesday market action is going to be critical for a successful upward launch of the lift setup.  On Wednesday the market should either be lifting quickly or will likely be in real trouble if a down cross happens because the lines are so tight now, all depending on how they work the market these next three trading days.

Trade well my friends


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