Sasquatch Roars Out of The Treeline

Stock Market Technical Analysis Blog

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In the market today Sasquatch, the monstrous short interest, who has been forced to cower in humiliation smelled the taper fears in the air and came charging out of the treeline with a pack of hungry bears right behind him.  His sudden appearance rattled a lot of investors and the selling mushroomed as the day went on.  We did have a noticeable divergence today however, as the VIX rose only modestly while the indexes heaved buckets which could trip up the bears if they get charging too fast.

Taking a look at the charts above:

1.  7-day intraday chart of SPY we see that it is already down to the support of the lower line of the slowly descending channel it broke up out of
2. 120min bar chart of VIX where we see a modest move stopping at the resistance of the red line
3. Day candles of SPY - okay, that is one ugly bearish engulfing candle
4. Week candles of SPY showing primarily today's drop
5. SPY - orange and greens lines should come to a juncture tomorrow
6. VIX - orange and greens lines should also come to a juncture tomorrow
7. SPY - did slip below the upper channel line finally
8. VIX - bears need to be cautious here, not much of a VIX move for such a huge selloff and the VIX is well within its orange channel containment
9. SPY -  shows bigger picture view of SPY dropping below upper channel line
10. VIX - shows the fat fingered double bottom the bears would like to get some mileage out of
11. SPY - the spitwad finally starts coming loose from the ceiling
12. SPY major EMA lift getting a little long in the tooth
13. SPY lost both the lower float turnover channel line and the 15 EMA line in one day
14. SPY ADX - plus, minus line are closing in on each other quickly
15. SPY slips below its 5th Gann ray sector,  MACD downcrosses to the delight of the bears
16. SPY still a little above the congestion of the traditional large SMAs
17. SPY shows a support line not far below if we do go lower tomorrow
18. SPY Fibonacci - new Fibonacci rack in place, we're halfway down to the first refreshment stand, the 38% retracement with huge red volume today
19. SPY 2-year chart shows it did fall back down into its two year blue line secondary channel
20. 25 year chart of S&P
21. 2-year chart of NASDAQ - a very important chart to examine as the Nasdaq has been climbing from its lower channel line to its upper for an entire year and is now stalling at the upper line.  Well known that it has been the leader for the bullish sentiment.  Today's big loss on the Nasdaq could easily be a game changer as far as broad senitment goes.
22. 2-year chart of DOW showing it is at its upper line of its horizontal blue channel, not much damage here today

Trade well my friends

Alan