Wednesday, May 12, 2010 9:40:11 AM
Follow-Up: The BIG Drop
Attempt At A Technical Explanation ...
Last 03 MAR 2010, in light of the overall downtrending SPX, I posted the chart below with the following note:
"... Watch for this continuation wedge formation (BEARISH), ... etc."
I think that the wedge "did its job" in acting as a continuation pattern, holding on to the $SPX as far and as long as it did towards its apex.
The result is no surprise, considering that the price precipitated to its "normal" technical place. Downwards, that is - IMHO:
(NOTE - At this point, the chart reached a BEARISH trend as per 1/VIX relative to SPX)
$SPX & 1/$VIX - 36-Month, DAILY Chart:
- Dalcindo
Attempt At A Technical Explanation ...
Last 03 MAR 2010, in light of the overall downtrending SPX, I posted the chart below with the following note:
"... Watch for this continuation wedge formation (BEARISH), ... etc."
I think that the wedge "did its job" in acting as a continuation pattern, holding on to the $SPX as far and as long as it did towards its apex.
The result is no surprise, considering that the price precipitated to its "normal" technical place. Downwards, that is - IMHO:
(NOTE - At this point, the chart reached a BEARISH trend as per 1/VIX relative to SPX)
$SPX & 1/$VIX - 36-Month, DAILY Chart:
- Dalcindo
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