After having a look at the yearly candles we next need to check the VIX for clues as to how much resistance Wall Street will have in executing its first 5 trading days of the new year pump routine.
click on image to enlarge
In the left Daily chart I have posted two very large EMAs that have triggered large moves in the VIX anytime they interact whether it is a simple line cross or the smaller red line being pushed up or down by the larger green line. Friday's sell off was a line bounce that triggered hard selling late in the day.
The chart on the right shows that Friday's sell off took the VIX back up into its three month uphill red channel that triggers stock selling every time it enters it. Right now the VIX is set up to have a negative effect on the first five trading days of the new year. However, keep in mind that the "mysterious buyer" lol, that likes to come in during the wee hours of the morning and buy S&P Futures really likes to do it on a Monday to get the new week off to a good start. We will have to see.
Trade well my friends
Alan
