Monday, May 11, 2009 6:11:06 PM
1/VIX & SPX - 200-MA: so close, yet so far ...
Major resistance still holds price ever so close to daily 200-EMA. At this point, it will become increasingly difficult for SPX to reach its 200-daily MA (i.e.: reversal patterns forming in RSI, MACD, ADX, 1/VIX, and volume - see charts below).
First chart points to the critical point at which VIX's reciprocal (and market consensus) favors a decline as we go forward.
Second chart point to the significant 50% Fib level (approx. $141), which price strives to attain.
Third chart relates current price to dominant down-trend channel.
Overall, there are several technicals that point to unlikely rally, and favor decline. Whether the price makes it to its 200-EMA may be less relevant for those already short and expiration beyond this month.
D.
Major resistance still holds price ever so close to daily 200-EMA. At this point, it will become increasingly difficult for SPX to reach its 200-daily MA (i.e.: reversal patterns forming in RSI, MACD, ADX, 1/VIX, and volume - see charts below).
First chart points to the critical point at which VIX's reciprocal (and market consensus) favors a decline as we go forward.
Second chart point to the significant 50% Fib level (approx. $141), which price strives to attain.
Third chart relates current price to dominant down-trend channel.
Overall, there are several technicals that point to unlikely rally, and favor decline. Whether the price makes it to its 200-EMA may be less relevant for those already short and expiration beyond this month.
D.
More LIVE charts
TA out of Moorea, French Pacific Islands
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
