Stock Market Technical Analysis Blog
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In the market today the indexes pushed higher with the S&P and the Nasdaq reaching the upper lines of their descending channels, shown in the left and middle charts above. We decided to close 1/2 of our long position from the Friday morning and Monday morning entries as we customarily do when up against such a pronounced downtrend line. Also, the VIX closed at its lower line of its uphill channel. We will stay in the remaining half of the position if the market breaks out of that channel tomorrow and the SPY and QQQ show no substantial on balance volume divergences.
This is another pivot and it is important that the market break out of this channel considering the quality of the EMA line bounce setup shown in chart 2 of my last blog.
Trade well my friends
Alan
