Stock Market Technical Analysis blog
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In the market today, we had a strong afternoon intervention to stop the bloodshed at least for a while.
Chart1: The Nasdaq slipped thru the red shelf line this morning but at midday they came in strong and drove it back up above the red shelf line for what is called a "hard test" of that line.
Chart 2: As they drove the Nasdaq higher the VIX dropped below the blue Day 432 EMA line, but just barely. I have shown many times thru the years how when the VIX crosses above that line the market sells like there is no tomorrow and the selling stops when we get back down below it as we did in the final hour today. It would have been nice to close further below the line.
Chart 3: Shows that S&P is building a base.
Chart 4: The advance decline "rally trigger" chart where each time the red line crosses above the green line buy programs kick in widespread. While chart 2 shows the selling has paused we still need for the red line to cross above the green in this 120min bar advance decline chart to start a rally.
Trade well my friends