The bulls failed to follow through on yesterday’s comeback rally, as
the event driven market ran out of steam at the 200DEMA, once again. As
was stated yesterday ,“the market needed to accept above Friday's VAh @
1215.25, and quickly make new highs with a close above the 200DEMA, in
order to meet it's 1260.00 target, otherwise the double-top reversal
scenario would take precedence going into opex,“ which is exactly the
situation the market now finds itself in, with 1215.25 now becoming
short-term resistance.
While the ES still closed well above it’s 50DEMA, and held the bottom trendline of it’s bull channel, the VIX closed above 34.00, and above it’s 50DEMA, along with the $ TICK daily, which closed below zero for the first time since the rally began on 10/04, casting doubt as to whether the nascent rally is capable of being sustained.The October VIX Futures settled at 33.15 this morning, down 57 cents from last month's settlement. This is the third month in a row that the futures expired with a value above 30. This hasn't occurred since the 2008 crash, proving once again that fear is a stronger emotion than greed, and that a break to 1170.00 is highly probable.
While the ES still closed well above it’s 50DEMA, and held the bottom trendline of it’s bull channel, the VIX closed above 34.00, and above it’s 50DEMA, along with the $ TICK daily, which closed below zero for the first time since the rally began on 10/04, casting doubt as to whether the nascent rally is capable of being sustained.The October VIX Futures settled at 33.15 this morning, down 57 cents from last month's settlement. This is the third month in a row that the futures expired with a value above 30. This hasn't occurred since the 2008 crash, proving once again that fear is a stronger emotion than greed, and that a break to 1170.00 is highly probable.
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