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Tuesday, September 5, 2023

Market Update Technical Tuesday - The Day after Labor Day Oil/Energy vs Tech SOS

 I just got back from vacation, and getting caught up on some charting, but most money managers won't be back at their desks until next week. Until then don't expect much movement. 

Getting caught up to speed 

The market continued to rally into the Labor Day holiday as predicted, a couple weeks ago. 

See: Market Update Thursday August 8th - What a difference a day makes! 

I was able to leave some positions on, and take profits on the road, using trading apps.  

The $VIX continues to be manipulated on light holiday volume, with the $VIX trading back in the 13's, and the $VIXY (short term $VIX futures) trading at new all time lows. 

Looking back at Friday's action: 

I knew when I saw tech top out, and oil breakout to new recent highs, I wouldn't have to look far to find a rigged energy chart. 

$USO - see where the bid on oil was raised in order to squeeze any would-be short sellers. 

Seeing the same thing this morning

Oil is basically testing the top of the range - looking at the long term charts  


China was also up big on Friday, and probably for no other reason than short covering. 

The Nasdaq 

$NDX (60 min. view) Big tech looks like it could still be trading in a bearish leading diagonal triangle, but you can also see that it's broken out, and it has already back-tested support, at my black upper triangle line.   

This update has run past the opening bell: 

Tech continues to hold up....

We saw home builders taken down at the open 

The market doesn't seem too predictable here, but what is obvious is that short term traders are using short term charts, and it still seems to be open season on short sellers.  

I'm going to need to do more charting, and probably have to wait until volume picks up before making any predictions. 

Take Care, 


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