VIX attempted to rally, but was contained by the top of the green box (I’ve drew) and came back right down as soon as it touches the top of the green box. The hardest thing to do was to buy. And for those who have bought, congrats. However, if you’ve not profit take, will the market continue its moves next week?
May started on a bullish note. Right after a pull back, the market headed for new high last trading week. The weekly trend is still up. RSI going lower as price heading higher. This could be a potential sign of weakness. Does it mean it will pull back next week? No one would know. Meanwhile, enjoy the party until you had enough or till it ends.
Daily is on its upper channel with RSI showing overbought. But usually, on the daily, prices can go deep into the overbought zone before any pull back.
VIX (Fear index) weekly is not going anywhere. Daily price has moved lower into the green box, which showed that fear is more contained base on last week’s price behaviour. It can go down some more before it rally from its oversold zone.
Summary:
Weekly trend is UP (climbed slightly into its overbought zone)
Daily trend is UP (climbed slightly into its overbought zone).
VIX is near its short term support line.
For the week of 6th May, I won’t be surprised market would break out to a new high (Dow above 15000). Shortises who are sceptical with the new high would be lured to push prices down. If this happens, that would be an opportunity to take another short trade.
Cheers
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NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
