- A significant day technically, for the S&P 500 (SPX) yesterday.
- The rising trend-line off of the February lows was broken.
- The triangle going back to early September that the market had been trading in, was broken to the downside as well.
- Still there was an end of day bounce that took price off of its lows of the day by a considerable amount, even though price action was still down -1.2%.
- Notable uptick in volume for SPDRs S&P 500 (SPY) yesterday. Volume was well above average and nearly three times the amount we saw the day prior.
- There are some notable gaps left unfilled on this chart - most notably the ones from the February low bounce which would require a significant correction, and the second one being from the Brexit rally back on 6/29.
- CBOE Market Volatility Index (VIX) had a big day for itself yesterday, rising 14.8%, but well off of its highs for the day, which has become obligatory for the VIX throughout 2016.
- Dip buyers are not afraid of this market, at least not yet. Dips are still being bought as was seen at the close yesterday, with the continued expectation that the market will always rally in their favor. It is a dangerous mindset that will eventually burn them bad.
- SPX 30 minute chart looking dramatically weakened and out of the 2-week chop area. It shows 2120 as being the next logical area for the market to test.
Chart for SPX:
- S&P 500 (SPX) managed to put together another bounce back rally that was quite simply meaningless in terms of accomplishing anything technically.
- The declining trend-line from the August highs was tested yesterday and saw a rejection in price with SPX retracing 40% of its gains on the day.
- Despite breaking it early on, once again the 50-day moving average was unable to see price close above it.
- Volume on SPDRs S&P 500 (SPY) rally yesterday failed to provide a good reading, coming in at the lowest since August 15th and at levels seen during a half day of trading on Christmas Eve.
- Rising trend-line off of the February lows are in view again with current support at 2147. Break it, then the next two support levels are 2144 and 2120.
- Taking the declining and rising trend-lines already mentioned already, you have a triangle that is forming near the highs of SPX. Typically these triangles, at this location, typically results in topping patterns that end badly for the bulls.
- Crude (/CL) made a big move yesterday on rumors Russia is willing to freeze or possibly cut production, causing oil to spike 3%. Now it is setting up for a move back to the June highs.
- Nasdaq (COMPQ) is the strongest index by far right now and it had a great opportunityh to establish new all-time highs, but fell short by 2 points.
- Despite the rally yesterday, the CBOE Market Volatility Index (VIX) barely saw a drop yesterday.
- Price action on SPX 30 minute chart is absolutely unintelligible over the last 2 weeks. Simply chop-city. It does fall in nicely with the triangle pattern over the past month.
- Friday's price action on the S&P 500 (SPX) came back with a strong bearish engulfing candle pattern.
- The price action of the last two weeks has gone absolutely nowhere. SPX is trading in a triangle range that continues to narrow, and with Friday's price action, broke down and below the lower trend-line.
- Volume on SPDRs S&P 500 (SPY) increased on Friday and was above recent averages.
- The rising trend-line from the February lows is setting up for a possible test. Currently it is sitting at 2143.
- CBOE Market Volatility Index (VIX) bounced perfectly off of the rising trend line from the August lows. Despite this, the VIX can not sustain any intraday moves and instead gives much of its gains each time there is a rally on the VIX.
- Crude (/CL) continues to march higher, much of it on continuous and unsubstantiated rumors about possible production freezes.
- Price action on SPX 30 minute chart is absolutely unintelligible over the last 2 weeks. Simply chop-city.