Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Wednesday, October 15, 2014

Midmorning Update: A Foot Slip Into The Bears Den

Stock Market Technical Analysis

click on image to enlarge

In the market this morning we had a huge gap down as sellers took down the SPY in premarket with the help of bad economic and ebola news.   In the upper chart we can see that this down move took the VXX up across the 40.25 red line and into the bears den.  Wall Street's trading algos quickly kicked in and brought the S&P back up into its short term blue channel shown in the lower chart cluster. However, by midmorning the VXX came back down to the 40.25 red lower line where it found support and is now starting to rise back up.  If they can push the market higher sometime during the day today technicians might be kind enough to call this a "hard test" of the 40.25 resistance line.  If they can't get the market high enough today to push the VXX below the 40.25 lower line then the S&P could have its first closing inside of the VXX bears den.

Trade well my friends


Blog Archive