8:02A.M. A look at many of the signals generated by the VIX vs SPX. The VIX has been in some form of a triangle for the last 6-7 months. I will be watching this chart for any sign of direction, especially a break of the top of the triangle, that could signal the beginning of a major run down...of course it could be 1/2 over by the time we get confirmation....every-one's entry will be different so follow your rules and plan your trades!
Chart courtesy of StockTiming.com
7:50A.M. Market profile chart:
Courtesy of subq
6:00P.M.(Sunday) This is a 15 min chart, market hours only, that shows the resistance we ran into in the 870 area. First it is our highest high since the beginning of the year and it is also at a major 50% retirement, the target for that ambush short is 762, a 100 point move. I know I will be looking for bounces to add to shorts as long as we don't break 873 on a closing basis.
5:25P.M.(Sunday) Here is a look at the weekly 5,3,3 Stochasitc overlay. As you can see in the past it has been a pretty good indicator to show where tops and bottoms should occur, although it is not perfect it is fairly accurate. The hanging man candle we put in last week is also the signal of a top as well and many sentiment indicators showing extreme bullishness. All of those factors plus, NOW some in the mainstream media are declaring the bottom in or the recession over. I think there will be a week or two of consolidation as the public is panicking thinking they are missing something and the institutional crowd will be selling to them, then we should turn down and possibly break March lows.
4:50P.M(Sunday)The $BPNYA is registering an extreme level of bullishness and is coming close to matching the years highs of 67.90. We should see the market start to correct very soon...starting this week. It should be an interesting week, stay nimble.
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