Markets drop after the opening bell but the VIX could not even punch above 14 let alone move towards 14.70, hence the selling faded and allows a bullish come back. The VIX is now under 13 providing bull fuel. The TRIN spiked to 2.55 at the market lows today but is now at 1.19, and even making it back to the 1.00 neutral line taking the wind out of the bear sails. The SPX is at 1560. The 8 MA remains above the 34 MA on the 30-minute chart signaling bullish markets ahead so the bulls have no worries.
The turmoil in Europe appears serious. The banks are sold off, however, the U.S. equity markets only want to move higher. The Cyprus banks reopen tomorrow so the extent of the bank runs can be gauged. Italy is a mess and appears that new elections may be required. Bersani says you must be 'insane' to run Italy and Monti can hardly wait to leave. The negative commentary by Euro leaders are hurting the Eurozone.
break out alert on MCP, bounced right of the 5.10 Support level and is putting in a very bullish candle with today's price action, which counts as a clean and clear 5-wave impulse of the lows.
ReplyDeleteThanks to KS for alerting us to this one!
another breakout alert is on FB: it did the required $24.80 gap fill this morning, touched the 150d SMA and instantly launched with good volume. All requirements are met and the up move looks very impulsive, with clean-clear 5 waves. My target for this 5th wave up (it just bottomed in a 4th wave) is mid to high 30s.
DECK also breaking out of trading range!
GL
Well, MCP is real psycho so anything can happen but it should be okay as time moves along. FB came down to fill that gap so time to see if it finishes the handle now and heads upwards here on out, then through the C&H break out line which would say that all the original buyers of FB when the mess came on line will likely see price come back up there as the year moves along. DECK has had a stellar straight up run from the November low. That's a lot of shoes.
DeleteI was surprised to see the drop in the VIX as well. I would have expected a lot of put option activity heading into tomorrow's opening of the Cyprus banks. Markets either turning a blind eye to it, or we could be in for a rally in the morning - counter-intuitive - but that's sometimes how the market works
ReplyDeleteYep, it was surprisingly calm. Some market turmoil would have been expected but did not materialize. The quarter is finishing today. Traders appear to be adopting a wait and see attitude. Markets may be very susceptible to an overnight event since this would allow the market to trap a lot of longs.
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