Stock Market Technical Analysis Blog
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In the market today we opened slightly green and closed flat but had a wild ride in the early morning. Shortly after the open, Obama talked about Syria and the market dived in minutes (shown in the top, upper right chart of the S&P) and as it fell the VIX shot back up to the blue 432 line (shown in the upper cluster, lower chart) where they jumped in fast to stop the selling and defend the 432 line from being crossed once again giving us a bungy cord ride back up to where it started. The rest of the day was pretty much sideways action in the tractor program tube they started on Wednesday. In the last hour, however, we had somewhat of a sell down much like we did yesterday which is very troubling as the market needs to ramp in the last hour and close at the high of the day if buyers are indeed willing to go in on the layup setup being constructed (upper cluster, top left chart). You can feel the intraday sentiment having drifted from slightly bullish to slightly bearish in the past two days and has been emphasized by the closing hour selling.
In the lower chart cluster of AAPL, we see that it took the hard dip with the market but also recovered leaving its layup lift setup (shown with the red & black lines) and its bullish trendline stance still intact. We already know that Obama will address the nation again on Tuesday, leaving Monday to probably be a disorientated day in the market. We will just have to see.
Trade well my friends
Alan
