The Qs edged up to hit the 10DSMA today, unfortunately on lower volume than yesterday. The Qs did show more strength than the DOW, riding the whole afternoon session between R1 and R2 and closing strongly, again with none of the typical closing volume surge. The TICK was interesting today ..... after running upslope 2 1/2 hours, it basically flat lined for the rest of the day, giving little encouragement to buyers.
The VIX has now retraced to the 20 DSMA and has reached support and short term oversold territory after a relatively low volatility day (lowest in 3 weeks).
The question is: was today positive (Qs) and (SPY), or negative (DOW)?
Based on Wednesday turnaround patterns, if we count today as negative, then tomorrow is more likely to be a positive day. That expectation is supported by the technical indicators, although as the VIX gets more oversold the likelihood of a return to selling looms and the current lack of volume argues for that scenario.
No comments:
Post a Comment