Part 2

Stock Market Technical Analysis Blog

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I had a reader ask if I could point out only the positive influences on the market and not mention the negative technicals that I see.  I would like to remind my followers that I am here to help those people who have had bad experiences with financial managers and want to learn how to manage their money themselves.  

I feel like it would be appropriate to post the double sentiment EMA cluster I have put up several times through the years.  The top chart is the S&P 500 and the lower is the VIX.  If you look at the VIX chart, you will see that each time the smaller red EMA line crosses above the green EMA line the S&P starts selling off at exactly that same point.  Also notice that when the red line in the VIX crosses down thru the green line, the market rallies.

I have demonstrated visually with the vertical red lines representing corrections and the vertical green lines representing market rallies.  What I want to call attention to is that in the VIX chart, the red line is threatening to bounce up from the green instead of crossing down thru it.  In both the S&P and the VIX, anytime the red line bounces from the green instead of crossing thru the green the market move in that direction is amplified.  

I call out the technicals I see for those who actively manage their money, meaning those who buy in and sell out of the SPY ETF 1-3 times per month. You should be watching the market closely tomorrow and Monday.  The S&P is at a pivot and is very close to starting a second leg down of the correction.

Trade well my friends

Alan