Thursday, March 04, 2010 12:25:00 AM
Re: $VIX, $SPX / $INDU / $COMPQ - Head-Butting Respective Overhead Resistance Line:
Hi, TTG!
Waited for market closing before replying ...
Markets are definitely testing their overhead resistance; some headway into it today on all three indices ( $SPX / $INDU / $COMPQ), with pullback towards end of day.
WEEKLY charts on same indices still under bearish pressure, despite hopeful FED comments and improving national fundamental data.
Technically speaking, VIX relative strength chart below pits short-term against mid-term sentiments. As VIX reaches a very low level of relative strength values, positive divergences are calling for some unwinding.
In the context of VIX's suggestion that the S&P might turn downwards, the following three major indices' WEEKLY charts add further credence to a high probability of a market-wide softening, considering the subduing impact that their respective long-term resistance has had recently.
A break-out would have to occur based on several fundamentals: more optimistic FED's statement regarding near and long-term monetary policy changes; improved world-wide economies that would have an increased semand upon our production capabilities; easing of middle eastern issues to relieve energy-costs associated with transport/production; and increase in our consumption basis - All of which are not likely to improve over the next 4-6 months, IMHO.
VIX - Short vs. Mid-Term VIX Futures - 12-Month, Daily Chart:
$SPX - 36-Month, WEEKLY Chart:
$INDU - 36-Month, WEEKLY Chart:
$COMPQ - 36-Month, WEEKLY Chart:
- Dalcindo
Hi, TTG!
Waited for market closing before replying ...
Markets are definitely testing their overhead resistance; some headway into it today on all three indices ( $SPX / $INDU / $COMPQ), with pullback towards end of day.
WEEKLY charts on same indices still under bearish pressure, despite hopeful FED comments and improving national fundamental data.
Technically speaking, VIX relative strength chart below pits short-term against mid-term sentiments. As VIX reaches a very low level of relative strength values, positive divergences are calling for some unwinding.
In the context of VIX's suggestion that the S&P might turn downwards, the following three major indices' WEEKLY charts add further credence to a high probability of a market-wide softening, considering the subduing impact that their respective long-term resistance has had recently.
A break-out would have to occur based on several fundamentals: more optimistic FED's statement regarding near and long-term monetary policy changes; improved world-wide economies that would have an increased semand upon our production capabilities; easing of middle eastern issues to relieve energy-costs associated with transport/production; and increase in our consumption basis - All of which are not likely to improve over the next 4-6 months, IMHO.
VIX - Short vs. Mid-Term VIX Futures - 12-Month, Daily Chart:
$SPX - 36-Month, WEEKLY Chart:
$INDU - 36-Month, WEEKLY Chart:
$COMPQ - 36-Month, WEEKLY Chart:
- Dalcindo
Dalcindo's Public List
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.
