Stock Market Technical Analysis Blog
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In the market today, the SPY was pummeled with sell orders early setting the stage for a fairly negative day. Our early Friday afternnoon entry on the SPY stopped out flat this morning.
We are a little concerned with the situation shown in the charts above where we see the S&P chopping sideways but the red line is holding on top of the green sufficiently. Looking at the VIX directly below, it rose considerably, threatening to have its red line cross above the green line tomorrow possibly. This is a mild bearish divergence. The fact that they couldn't get a squeeze going today after all the heavy buying in the SPY in the last two hours Friday says a lot about trader sentiment. We will be hesitant to take any long position in the SPY until we see a clear pushdown scenario in the VIX which appeared on Friday but basically reversed itself today and is so close to a bearish up cross now.
Trade well my friends
Alan
