Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Friday, September 26, 2014

S&P Channel Bounce

Stock Market Technical Analysis 

click on image to enlarge

In the market today there was a good bounce after yesterday's selloff.  The S&P started lifting from its lower short term channel line right from the open (shown in the top chart cluster, lower right chart).  It can be seen in that chart that it actually closed on the top side of that downhill channel which is fairly bullish looking towards Monday.  The Nasdaq & Russell 2k clusters are not at critical junctures today.

Skipping over to the VIX we see that it failed to drop below the lower line of its short term uphill channel today (bottom cluster, lower right chart) which is bearish looking towards Monday pretty much offsetting the S&Ps bullish short term setup.  Looking at the VIX long term chart (big chart) we see that it closed right at its upper red channel line.

With the S&P short term channel bullish and the VIX short term channel equally bearish, we are basically net neutral on bias.  Then you add the big daily chart of the VIX closing right at its upper line also gives no direction bias making today's closing net neutral across the board.

You have just got to love how these guys operate.  They managed to craft and manipulate today's action to produce a close that gives no clue whatsoever which direction the market will go next week as they often do when the market gets dicey.

In this weekend's focus chart blog I will go over a bigger picture setup that they are trying to build. 

Trade well my friends


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