Strength lies in differences not similarities
Aktualisiert
VIX on the 4H chart is registering a descending wedge pattern and in due time, it will reverse and goes up in a ballistic manner. Likewise, the SPX500 is in an ascending wedge pattern, which is bearish.
The challenge about these wedges pattern is it is hard to tell when will the price action begins to reverse. Sometimes, it reach to the end of the wedge before we see the action we want and sometimes, prematurely.
Two things stand in the way though for VIX. One , it is at the support level , 30.31 and this could cause the price to rebound. Two, there is a gap at 18 to 22 price range awaiting to be filled up. That could means, VIX has more to fall before a rebound. And all this can happen within the wedge pattern itself.
I doubt the NFP data tonight will be any different from the past and cause any huge movements in the market tonight. Mr Market seems to be well shield from all these negativity thus far.
Attempting to analyse the stock market from a rational mindset can sometimes be frustrating. Go take a break and come back tonight to check out the chart. Who knows, you might be pleasantly surprised !
The challenge about these wedges pattern is it is hard to tell when will the price action begins to reverse. Sometimes, it reach to the end of the wedge before we see the action we want and sometimes, prematurely.
Two things stand in the way though for VIX. One , it is at the support level , 30.31 and this could cause the price to rebound. Two, there is a gap at 18 to 22 price range awaiting to be filled up. That could means, VIX has more to fall before a rebound. And all this can happen within the wedge pattern itself.
I doubt the NFP data tonight will be any different from the past and cause any huge movements in the market tonight. Mr Market seems to be well shield from all these negativity thus far.
Attempting to analyse the stock market from a rational mindset can sometimes be frustrating. Go take a break and come back tonight to check out the chart. Who knows, you might be pleasantly surprised !
Anmerkung
support is broken down for VIX, bears for equities super upset while bulls celebrate.Anmerkung
only for two days before VIX decides that it has better to come back to its support at 30.31. It has now break out of the descending wedge, a bullish sign. If this is not a false alarm, then we can expect the US indices to fall further from here.
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