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LOL, You just have to love it...
After spending a week trying repeatedly to break out of its sideways channel using every trick in the book, today the bail out team decided to heck with legitimately trading the market higher method and decided to pull out plan B - the old "Gap and Squeeze" and it worked quite well causing the shorts to spend the day trying to get their short positions covered.
In the upper chart cluster, row 2, the VIX / fear index, I drew in a red break out line to show why it was critical that they get the market higher regardless of how.
In the lower chart cluster, row 1 chart 1, we see how today's move twisted the red/green 5/10 downward pierce into a doglegged 5/10 bounce.
In row 2 chart 2 we see that the bears kept the 30 min S&P from crossing above the lower line of the early summer red line bull channel, once again.
In row 3,chart 3 we see that the advdec chart is up in the overbought area, so we will have at least an intraday pullback in the morning.
Where do we stand now? We avoided a bullet when the VIX chart (upper cluster, row 2) came back down below the red breakout line. Yet it is equally as bearish that the 30 min S&P chart couldnt get back up into the red bull channel (lower cluster,row 2 chart 3).
Hopefully we don't start another week of drifting sideways that leaves few trading opportunities.
Alan
