The late action combined with the close proximity of the support levels of 1327 and 1325 makes those levels vulnerable to a gap down tomorrow morning.
Wednesday, April 6, 2011
Not a Reversal Day...but Still Interesting
SPX has now completed three doji candles at resistance...
...but I think the most interesting part of the day is what happened after the cash session closed:
Note how the VIX was testing an important support level at the same time the ES was trying (and failing) to get above the 61.8% retracement level. VIX shot northward immediately after the cash session closed as a significant volume of futures were dumped. The VIX closed by breaching declining resistance, setting the stage for a move higher tomorrow.
The late action combined with the close proximity of the support levels of 1327 and 1325 makes those levels vulnerable to a gap down tomorrow morning.
The late action combined with the close proximity of the support levels of 1327 and 1325 makes those levels vulnerable to a gap down tomorrow morning.
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