Stock Market Technical Analysis Blog
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In the market today we had a decent up day as we had a classic low volume Friday float up. The key situation tonight is with the VIX (lower chart above) where we see it is in the process of testing its upper green channel line. Yesterday, it broke above it briefly and retreated but failed to drop out of the ascending blue channel line today and it actually closed right at the lower line of the blue channel much the same as the SPY inversely closed at the upper line of its blue channel.
Monday morning will be critical. If they can come up with genuinely positive news to offer on the Washington situation on Monday it could trigger the VIX's blue channel breakdown which would cause the SPY to break up out of its blue channel. It will have to be genuinely positive and meaningful news though because if they pre-package something lame as a positive development on Washington the market will likely spit it out and continue downward.
Monday morning will be critical. If they can come up with genuinely positive news to offer on the Washington situation on Monday it could trigger the VIX's blue channel breakdown which would cause the SPY to break up out of its blue channel. It will have to be genuinely positive and meaningful news though because if they pre-package something lame as a positive development on Washington the market will likely spit it out and continue downward.
Trade well my friends
Alan
