Page menu

Tuesday, August 17, 2021

Market Update 8/17/21- $VIX breakout, could lead to August Swoon!

 Looking at some longer term $VIX charts this morning, in order to try to determine, why the $VIX was sold - at yesterday's open. Turns out that 17.71 level is major resistance on a weekly chart. and the DCS chart! It also opened above the 50 day moving average, but was then hammered below the 17.17 level. This is significant, because a breakout on the $VIX - at these levels - is going to trigger sell orders. I'd be very cautious here! This looks like the perfect storm! $VIX 22.75 looks like st resistance, on the DCS chart, and the trend on the weekly chart. A breakout there will cause panic selling. Not really expecting that, this time of year, but we're seen August swoons in the past. 

$SPX - Looking at a short term view of the $SPX, you can see the S&P has traded into a little upturned triangle pattern. Liking a pullback to the 4319 level, to wrap up around the end of the month. That would set up for a Sept rally.  ST support is 4470 (which already broke overnight), with more support at the bottom of the pattern around the 4440 level. Resistance would be any retest of the highs or 4500. if it continues to hold up for another week. Doubtful... 

Funny, I alerted to a breakout on the $SPY, going into yesterday's close, and it did, but it's looking more like a false breakout this morning. 


No comments:

Post a Comment