Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Tuesday, September 23, 2014

Support Lines Don't Hold

Stock Market Technical Analysis Blog

click on image to enlarge

In the market today we had an intense struggle at support lines early on, however, as we got into the afternoon they gave way on several indexes.  

Taking a look at the large charts above:

  • Chart 1 - the S&P turned loose of the horizontal blue line coming across from the July peak by late morning and in the afternoon slipped out of the 8 month red line channel.
  • Chart 2 - the NASDAQ actually slipped back into its year long red channel yesterday but fared a little better than the other indexes today as it did not breach last week's lows during the selling.
  • Chart 3 - the Russell 2000 Index (IWM) has a lot of people concerned.  It slipped out of its 2.5 year black line channel last Friday and it's not looking like it may try to get back into it.
  • Chart 4 - the VIX (Volatility Index) broke out of its red line channel this afternoon.  

Of the four charts, the VIX breakout is the most concerning because as long as we are above that red channel the market is not going to be very friendly.

Trade well my friends


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