Stock Market Final Bounce Before Panic
Stock-Markets / Stock Markets 2012 Oct 15, 2012 - 12:29 PM GMTSPX is making a final bounce from its 50-day moving average at 1429.27 before reversing down toward mid-Cycle support at 1377.06. Intermediate-term resistance is at 1439.44, but it’s a toss-up whether SPX will get that far. The trend is still down, but the panic does not begin until it is below the 50-day moving average again.
VIX is retracing its latest surge back to short-term support at 15.61. Normally, the VIX would have broken out and even surpassed its neckline. However, there have been numerous extensions that show some type of suppression.
GLD seems to be leading the decline today. This morning it gapped down beneath Intermediate-term support/resistance at 169.25. The next support is the 50-day moving average and the Orthodox Broadening Top lower trendline at 165.60.
Oil is also leading the downward moves in the commodities complex.
NDX has clearly broken the lower trendline of its Orthodox Broadening Top. The retracement rally today may be partially due to the attempt in the NDX to touch the lower trendline again. This pattern should resolve in a further decline soon. The Broadening Wedge, with a lower trendline at 2700.00, does not call for any retracement once it is crossed.
Regards,
Tony
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