Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Thursday, October 23, 2014

And 3 AM Magic It is

Stock Market Technical Analysis

 click on image to enlarge

Following up from last night's blog where I showed how the VXX was setup to lift and cause another sell off, Team Yellen was ready this time and came in at 3 AM on the SPY (left chart) taking its price to a much more desirable number by 3:10 AM then holding it for a big regular session gap up and the subsequent short squeeze.  In the center chart we see the huge gap in the SPY compared to yesterday's close.  In the third chart they took the liberty of having the data feeds fill in the S&P with a solid bar making it look like it was a rally from the opening tick when in reality it was a monstrous gap up from 3 AM.  They hope you will forgive this minor tweak in the data feeds.

Compare this cluster to last night's chart and you can see how effective the 3 AM SPY intervention was.

Note that the VXX isn't sure it wants to go along with all of this.

Trade well my friends


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