Stock Market Technical Analysis
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Tuesday's market action was a win for the bears negating Monday's win for the bulls. This increases the pressure on the pivotal situation the Indexes are at right now. Looking at the top chart cluster above, the midterm channels overall are still holding but looking a little heavier this afternoon. The Russell 2k actually started to lose its channel going into the bell. After hours, the SPY and QQQ took a noticeable drop.
Looking at the second cluster above, the EMA charts, we can see that tomorrow really needs to be a day for the bulls because the upper day chart EMAs are getting dangerously close to a down cross. Skipping down to the VIX charts, we see it's still managing to maintain its upper momentum.
All in all, Tuesday needed to be at least a sideways day but it wasn't. This puts tremendous pressure on Wednesday because if it starts with a gap down and doesn't recover then we could see the day EMA charts start to show the beginning of a down cross which could easily trigger big sell programs. The market really needs a 3 AM Team Yellen intervention on the SPY as they have done so many times before at critical junctures.
Trade well my friends
Alan
