Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Thursday, September 4, 2014

S&P Weakens A Little

Stock Market Technical Analysis Blog

click on image to enlarge

In the market today the S&P got off to a good start and for a little while it appeared there might have been a short squeeze coming but then the big sells started coming in too fast and it reversed back down to close slightly negative.  

Looking at the charts:
  • Focus Chart at top - shows the SPY is managing to resist the downcross, but barely.  Notice that it did get slightly oversold from the two moving averages and printed a 60 minute bullish hammer reversal candle for the last bar.
  • Chart 1- S&P held at its lower line during the final hour and started bouncing up from it into the bell.  
  • Chart 2 - VIX popped back up into the blue channel but settled back down some into the bell.
  • Chart 3&4 - see Tuesday's 9/2 blog for commentary.
  • Chart 5 - shows the S&P is holding just above the blue horizontal line coming across from the July peak.  It is critical that this line is not breached.
  • Chart 6 - shows the VIX closed up in the black horizontal mother channel, mildly bearish for stocks.  
All in all, it was a slightly disappointing day for the S&P but if Team Yellen can make good on that slightly oversold 60 minute bull hammer candle at the close, they might have a better day tomorrow.  We are still flat with no  positions.

Trade well my friends


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