Last week has been volatile, causing a red candle after 5 weeks of continuous rally. What is the market looking in the year of the snake?
On the weekly chart, trend is still up.
On the daily chart, the pull back from last week have kind of cool of the overbought state. In the last 6 months, when that happen, it increases two possible scenarios. In Sept 2012, when that happened, the market went down. In Nov 2012, and Jan 2013, the market actually trended higher. All I can say is we are at a deciding point at the present moment. Usually, this is the time that will decide if the present point is at the low of a new high, or high of a coming low.
Now, 1500 on the S&P 500 is looking to hold, and have broken above 1515 resistance level. If 1515 fails to hold, broke and stay below 1500, this would be a bearish sign. If not, let’s give the bulls the benefit of the doubt that it’ll continue to go higher.
VIX (fear index) weekly trend is still down. Daily trend is ranging sideways.
Summary:
Mid term view:
Trend is up.
Short term view:
Watch is the Resistance of 1515 would turn support. If not, 1500 support must hold to maintain the momentum of this Bull Run. Since VIX is near the low of its range, tread carefully if you are a bull. If you are a bear, run away quickly when you are wrong.
Cheers
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NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
