Stock Market Technical Analysis Blog
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In the market today we had follow thru from a strong bounce at the open on the Nasdaq. It lifted all indexes back into safer areas.
Looking at the large charts above:
- Chart 1 - S&P - climbed back up into the red channel it fell out of yesterday and got above the horizontal blue line coming across from the July peak. However, it still needs to break thru the upper line of the black channel to show that the black channel is not now the dominant channel restraining it.
- Chart 2 - Nasdaq - price closed right at the upper line of its red channel and the center line of its black channel, truly sitting on the fence.
- Chart 3 - Russell 2000 - had a more modest move today, overall it is the chart that is the weakest.
- Chart 4 - VIX - had a substantial drop today making it down to the center of the red channel in its big daily chart. In its short term channel chart just below it, we see that it got back down into its big downhill channel in the afternoon.
All in all, it cannot be determined yet whether today was just a one day bounce where Team Yellen wipes out all the shorting that took place yesterday or if they will be able to keep the market rising since the VIX could easily have 2-3 days of travel before it gets down to its lower red line.
Trade well my friends
Alan
