Stock Market Technical Analysis Blog
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In the market today we pretty much survived last night's fright fest where a number of leading technicians and market strategists all predicted a big market drop and one went so far as to imply a 1987 sized market crash was imminent. They were partially successful in doing damage to the market as there was a flood of ma and pa investor sized sells processed right at the open causing the market to sell down for the first couple of hours but then reversed midday and traded back up to almost flat and the high of the day at the close.
Friends, don't listen to them just watch the VIX. When the red line crosses above the green line in the lower chart above, this is when the market starts selling. If after the red line crosses above, it turns over and sets down on the green line and then pushes up from the green EMA then we have a hard sell-off starting. Take a look at last night's blog and then tonight's, blog and you will see that the red is still being forced downward by the green which is a very bullish situation. This is not where market sell-offs start and certainly not where 1987 sized market crashes start.
Just watch the VIX and mute the talking heads.
Just watch the VIX and mute the talking heads.
