Stock Market Technical Analysis Blog
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In the stock market today we had one of the most convoluted price action days that we have seen in a while. Looking at the upper right side charts first, the 120 minute bars charts of the Nasdaq, SPY, and AAPL, we see what happens when a symmetric triangle is trying to break lower but is forced upwards. At the open they jammed all three to try to start the triangle play to the top side but it wasn't long before sellers came in heavy and reversed it all.
Looking over to the left side charts above, the daily EMA charts of the Nasdaq, SPY, and AAPL we see that the red/blue 5 EMA / 20 EMA line bounce that I have mentioned that they have been trying to set up for the past couple of days is in trouble as of today's close. AAPL actually had the 5/20 do the down cross today (but could get the obligatory price-50 bounce tomorrow but the EMAs are now bearish) and will be considered a broken chart for a few days. The SPY popped nicely but gave it all back. Yet its red 5 is still topside of its 20 but barely. The Nasdaq if you look closely actually had its 5 line begin piercing down through the blue 20 line as of today's close. You have SPY being neutral, Nasdaq slightly bearish, and AAPL very bearish.
Looking at the VIX Futures (VXX ETF) we see that red 5 still going sideways with the green 10. If the red 5 crosses above it will trigger widespread automated sell programs to kick in. Technically the VXX is holding sideways too long to be able to turn back down now but you've got to believe that Bernanke's team is circling the wagons tonight and preparing for a better show tomorrow hopefully enough to reverse these breakdowns that are starting. If they don't we could have sell signals across the board on all the indexes and key stocks quickly.
Looking over to the left side charts above, the daily EMA charts of the Nasdaq, SPY, and AAPL we see that the red/blue 5 EMA / 20 EMA line bounce that I have mentioned that they have been trying to set up for the past couple of days is in trouble as of today's close. AAPL actually had the 5/20 do the down cross today (but could get the obligatory price-50 bounce tomorrow but the EMAs are now bearish) and will be considered a broken chart for a few days. The SPY popped nicely but gave it all back. Yet its red 5 is still topside of its 20 but barely. The Nasdaq if you look closely actually had its 5 line begin piercing down through the blue 20 line as of today's close. You have SPY being neutral, Nasdaq slightly bearish, and AAPL very bearish.
Looking at the VIX Futures (VXX ETF) we see that red 5 still going sideways with the green 10. If the red 5 crosses above it will trigger widespread automated sell programs to kick in. Technically the VXX is holding sideways too long to be able to turn back down now but you've got to believe that Bernanke's team is circling the wagons tonight and preparing for a better show tomorrow hopefully enough to reverse these breakdowns that are starting. If they don't we could have sell signals across the board on all the indexes and key stocks quickly.
Alan
AAPL Cluster & two Big Picture Clusters are updated below:
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Click on image to enlarge
Click on image to enlarge
