Wednesday, January 14, 2009

Sideways Channel Support Breached on Light Volume


So if we have a symmetrical penetration to the downside here that matches the 943 breach to the upside we could see support at 831-2.
There's no volume conviction behind the move today, just another day in a bear market, going down on light volume.
Don't forget Options Expiry, prices can do funny things on funny money by Friday...
11:30 ET Update - 3 min candle trend turns back up... let's see if they are serious.
13:45 ET Update - Both Nasdaq and SPX 3 min candle trends turn back down. Expected retest now on SPX 839.98
15:15 ET Update - So SPX now well under 840, today's trading must be considered in the context of overall light volume on the daily. The key today will be whether or not we close inside or outside the 10/10 trading envelope, regardless of volume.
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4 comments:

  1. toJanuary 14, 2009 at 9:38 AM

    VIX is now back in equilibrium after having hit 50.66 this morning. SPX equilibrium = 890.40

    ReplyDelete
  2. yaa-whooooJanuary 14, 2009 at 12:47 PM

    look @ SSO bouncing off that Nov. 20 all-time vol candle , high @ 22.66..to the penny! any significance?

    ReplyDelete
  3. melJanuary 14, 2009 at 1:07 PM

    still inside the 10/10 range on low volume. i see a short term bounce

    ReplyDelete
  4. SemiBizzJanuary 14, 2009 at 1:16 PM

    yawhooo... SSO is a derivative, the underlying SPX is the primary signal...

    ReplyDelete

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