The market has been able to keep itself up since 03/06/09 with no significant pullback. This rally has been the sharpest and longest rally since...the Great Depression :-PUnfortunately the last three candles formed a Bullish Side-by-Side Whitelines formation. This is a bullish continuation pattern. Technically the three candles leading up to this formation where in a down trend...so we will have to see how it goes. Today was interesting as the markets were more or less flat, but the $VIX was up a startling 3.5%! So on a day in which the market open low but stage a good rally to get back to even...the vix spiked?? Something is not right, somewhere...
I expect the VIX:SPX to start making a steady march to the upper trendline. MACD still hasn't crossed over but I expect it will soon. Sentiment has swung to optimistic long term as well as short term from www.sentimentrader.com:
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Today was interesting as the markets were more or less flat, but the $VIX was up a startling 3.5%! So on a day in which the market open low but stage a good rally to get back to even...the vix spiked?? Something is not right, somewhere...
GS numbers were coming out Poker, thats all it was...ST pullback imminent, then one more push up into expo Friday.
I am more in the drop into friday opex...max-pain for SPY is at 80...so I am looking at a big drop tomorrow and then maybe a hold at that level till friday.
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