Thursday, May 21, 2015

May 21 - More bullish consolidation

Looks like we are bouncing nicely off the lower BB on the hourly and we are probably heading into some listless flopping around into the weekend as the big traders start winding down.  Sitting long SPY looking to make this an intermediate term trade.

The best case scenario for the bulls I believe isn't the market blasting up but for it to establish a base above recent support which is around 212.5 in SPY.  If things stabilize here, it will lower the chances of a down move breaking back into the months long consolidation zone.  VIX is also breaking down from its sideways action and there is a chance that finally it also falls lower out of its extended consolidation zone.

The dotted red vertical lines indicate failed sell signals which may mark a trend change.  Looks like more sideways movement within a tight consolidation zone and potential breakout next week.

SPY on daily consolidating over support

If VXO breaks the support line, we could see some fast money come into the market.

Same with VIX...


Direct Links said...


Direct Links said...

Nice Post

Read More Tips :

Jan 20 - Equities caution signal, short SPY, NFLX

Call buying has come back and very good chance of a pullback here