Stock Market Technical Analysis Blog
Click on image to enlarge
In light of the likeliness of going over the fiscal cliff, today they decided the best defense was a good offense and jammed the market higher using the AAPL 432 EMA line bounce technique they used on 11/16 & 12/17 that I called out on my blog posts on those dates. Since they are not going to have the major positive event that would avoid the fiscal cliff, they are trying to put the VIX "cat" back in the bag by using the technique I described in the third paragraph of my Sunday night blog post.
Looking at the chart above, today's drop in the VIX has already morphed the red line upcross back down to a pancake merge in just one day. Everyone knows that when they spring AAPL off the 432 EMA line that short squeezes start on the broad market. We'll have to see if they can put some legs on this one.
Alan
