Sunday, June 7, 2009

/ES Has Reached Top LT Trendline And The VIX

Some of you will remember these /ES charts from previous posts. They tell a simple story. The /ES has a dominant bear market channel down from the top and an intermediate channel off of a point near the bottom. Why am I bringing this up now? The intermediate channel touched the top channel lines last Friday at the open. This can be clearly seen in the daily chart.

Here is the weekly chart. Weekly RSI has a negative divergence and STO is embedded. MACD histogram is topped out and it is hard to tell if there is a divergence in there or not, but given the action of STO and RSI I expect a bearish signal cross soon.

Here is a drilled down view of the daily chart. The daily volume has decreased from 5/8 and the indicators have all set negative divergences. MACD should put in a bear cross Monday.

Now a look at the VIX. I have identified a falling wedge with A-E touches. MACD has flat lined while the price has continued to fall. ROC has broken a trendline and ADX is close to (and has been trying to) give a bullish cross. When the RSI trendline gives way the VIX will be on its way to several targets identified in the chart.

1 comment:

  1. OMG, a blog post totally focused on charts?

    Where did Shanky go????

    Clearly he is dead.


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