The VIX is only down 4.19%, and possibly only testing the trendline that was broke on Friday's large move, if so, then the trendline becomes longer-term support.
In an unusual turn of events, the 20 day MA is acting as resistance instead of support this morning, currently at 1282.24, the HOD on the SPX has been 1281.72.
Click here for a live, and updated chart!!!Looking for a small bounce here for a 2nd wave, but it might not bounce that much, a test of the thin green median channel line would be about right. Depending on which index you look at, futures seem to have put the 5th wave squiggle in of the 1st down, but the cash, SPX, seems to be working on a 4th wave squiggle. The indicators are over-sold short-term so a bounce is coming. For the bears, not having a gap down was a positive development this morning, because the SPX has filled every gap down for the last two years, and that has always lead to higher highs.
by definition if the market is trading at or near the highs of the past 2 years, wouldn't every gap get filled? Once the trend changes, this gap filling may not mean anything....
ReplyDeleteRichard, yes!! the gap downs will get filled, that is my point, we have had many, many gap downs in the last two years that were filled because we are near the highs. Odds have been very good that any gap down will get filled, LOL!!!
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