The intermediate term, our big brother (Dow) is in its mid-term down trend. S&P is still slightly resilience. However, if both RSI is not going to pull back up above the green zone (refer to the chart), we should be in for a deeper pullback, probably to the lower edge of its envelop.
The short term showing some potential sign of a possible fight back from the bulls. Although the trend is still clearly down, RSI is now in oversold zone. In the last 1 year, when RSI is in such deep territory, a rally took placed. Right now, this would also increase the chance of a possible rally. But a rally does not necessary signal a reversal of the downtrend. It might only be a bounce from a down trend. The importance is the ability to follow through if it rallies.
VIX (Fear index) weekly is moving slightly further away from its support level, creating a mid term up trend, with more room for further moves before it reaches the its resistance.
VIX daily has reached the top of the green box. This might act as a short term resistance and warrant a pull back.
Summary:
Long term view:
Monthly trend is UP
Mid term view:
Weekly trend is DOWN. Let’s see how much follow through the down trend can resume its power next week to determine its strength.
Short term view:
VIX is in its short term resistance. Dow and S&P is in short term support. This would stage a possible rally again. Again, there’s no guarantee that it will happened. But if it does happen, watch if there’s follow through from the rally. Without a strong price follow through, the force continues to be on the bears’ side.
Cheers
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NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.