Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Friday, February 7, 2014

Day 2: A Big Day

Stock Market Technical Analysis Blog

click on image to enlarge

In the market today we had a strong up day for the second day.  They are turning the titanic and it is indeed turning and fairly quickly.  

Looking at the charts:
  • Cluster 1: most interesting is chart 8 which we will be watching to see if the VXX drops down into its longterm downhill channel Monday or Tuesday.
  • Cluster 2:  once again, the VXX  (VIX futures) stands out as they are showing resistance to going lower.  Also, chart 9 the bonds shows the bond traders aren't sure the stocks will still be rallying next week.  
  • Cluster 3:  Most interesting is chart 2, S&P, where we see today's trading closed at its orange 50 day EMA line.  Also, notice that in the TLT bonds chart they are preparing a red/ green 5/10 layup to welcome traders back over to their playground should the S&P not break thru that 50 day EMA line on Monday.
  • Cluster 4:  key charts are VXX where we see it set down on its orange 50 line at the close.  Also notice the TLT bonds are showing support at its blue 20 line.
The Fed cannot let up on this drive next week, it's all about momentum and if they lose it it will be difficult to regain it.

Trade well my friends