Wednesday, April 17, 2013

Market at ST support. Will it bounce one more time?

The market is trading down to short term support again. If it holds it will probably delay the waterfall type decline that I have been expecting. If not, it will be starting immediately.

Notice the VIX stopping at it's ST resistance just as the SPX was trading at support.
However, the VXN and RVX have both broken out of their ST resistance areas.  They might pull back to ST support before continuing higher but the trend is now up.  This support could hold for a short time but should break from a tidal wave of selling.

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