The market was making its way to its previous high and indeed we saw a pull back. Betting on this pull back, I managed to capture VXX at $11.04. As i was unsure if this was going to be just a knee jerk reaction or a reversal, I decided to close the position as soon as it reaches $11.80.
The following week is going to be interesting as prices are getting tighter in its range.
The market did a pull back, but with no price follow through. Price rallied off its low of the week. Is the market forming a double top, or a dip in an uptrend, it is too early to tell at the present moment.
The daily price movement shows prices have retreated from its overbought zone into neutral zone. However, the power of bears are not looking too damaging at the present moment.
The weekly chart of the VIX is still in its down trend. But MACDH begins to tick up. Next week price action is crucial to determine if VIX is going to rally off from this present low and complete a double bottom.
The daily chart of the VIX turned into a short term uptrend, but prices stalls at the short term resistance level around $16, and did a pull back at the overbought zone.
Next week, we would know if this is just a rally from its downtrend or it is the first step of correction that is about to happen.
Summary
Mid Term View: The market is still on an uptrend
Short Term View: The market is on a short term downtrend. A bull would believe this might be a possible dip in an uptrend. But if there’s a rally but fail to break above 13200 DOW; 1420 S$P and hold, start making friend with the bear.
NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
