Stock Market Technical Analysis Blog
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In the market today we had an open that dipped into the negative for a few minutes that actually caused the tip of the orange line in the upper chart to barely peek thru the underside of the brown line. It showed only for a couple of minutes but, before big sell programs could kick in, they jammed the market hard causing a fierce short squeeze allowing the market to have a big up day. The results of today effectively counteracts the selloff from yesterday afternoon allowing the orange line to become exactly parallel on top of the brown line in the upper chart. When we took the dip at the open, the VIX jumped back up and tested the blue 432 line and it held once again allowing the short squeeze to get legs.
We are now in the second day of what would ideally be a five day generally sideways movement that begins to give the market consecutive lift days by Friday or Monday if the layup setup (in the upper chart) successfully completes and generates a move back up to 8/2 peak.
Trade well my friends