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Sunday, June 11, 2017 2:05:53 PM
Weekend Stock Market Analysis
By Amateur Investors | June 10, 2017
Both the VIX and VXV are exhibiting a Wedge type pattern. Furthermore both encountered resistance 4 weeks ago at the top of the Wedge (points A). Typically a Wedge pattern is followed by a strong reversal of the overall trend. In this case, since the Wedge has been trending to the downside, one would expect a strong reversal to the upside at some point.
A longer term chart of the VIX shows that move up to the downward sloping trend line from the late 2008 peak is certainly a possible target which is in the mid to upper 30's.
Finally if the Wedge pattern in the VIX continues for a few more months the next level of resistance in the S&P 500 would be around the 2485 area. This level is the 200% Extension Level calculated from the 2007 high to the 2009 low. Notice past corrections (points C to D) developed from the 161.8% Extension Level and at the 78.6% and 61.8% Retracement Levels.
http://www.amateur-investors.com/AII_Weekend_AnalysisJune_10_17.htm
• DiscoverGold
Click on "In reply to", for Authors past commentaries
By Amateur Investors | June 10, 2017
Both the VIX and VXV are exhibiting a Wedge type pattern. Furthermore both encountered resistance 4 weeks ago at the top of the Wedge (points A). Typically a Wedge pattern is followed by a strong reversal of the overall trend. In this case, since the Wedge has been trending to the downside, one would expect a strong reversal to the upside at some point.
A longer term chart of the VIX shows that move up to the downward sloping trend line from the late 2008 peak is certainly a possible target which is in the mid to upper 30's.
Finally if the Wedge pattern in the VIX continues for a few more months the next level of resistance in the S&P 500 would be around the 2485 area. This level is the 200% Extension Level calculated from the 2007 high to the 2009 low. Notice past corrections (points C to D) developed from the 161.8% Extension Level and at the 78.6% and 61.8% Retracement Levels.
http://www.amateur-investors.com/AII_Weekend_AnalysisJune_10_17.htm
• DiscoverGold
Click on "In reply to", for Authors past commentaries
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
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