Stock Market Technical Analysis Blog
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In the market today, the Friday afternoon entry for yet another over the weekend hold play started a couple of hours earlier. It was boosted by the short term oversold condition at day end yesterday that I mentioned in last night's blog. We decided to go ahead and enter in the early afternoon because this weekend trade could sprout some legs for a couple days. Granted it is a high risk trade because we are so overextended from the 108 EMA as I have shown in chart 4 above. Nonetheless, team Yellen has proved more than tenacious in preventing any short signals from starting.
Tonight's focus charts at the top show why we might get a couple days of climb from this weekend's hold. In the top chart we see that the S&P has gone sideways long enough now to reach a layup bounce situation in one of the classic EMA pairs while in the lower chart, the VIX has gone sideways long enough that it has reached another classic EMA pair but in a pushdown setup. These types of interactions typically produce 2-3 day of movement. Whether or not we get that much at the overextended levels we are at, we will have to see but we felt it was certainly worth the risk on another weekend hold trade.
Trade well my friends