SPX Bounces off the Neckline
Stock-Markets / Stock Markets 2016 May 18, 2016 - 04:17 PM GMTSPX bounced almost precisely at the Head & Shoulders neckline at 2040.00, after having complete another impulsive decline. It appears to have attempted a 50% retracement of that decline at 2055.00 thus far. The bounce may have relieved the oversold condition enough to attempt another decline, but the bear market doesn’t gain strength until 2040.00 is broken.
There may be some interest in keeping the market flat through options expiration. If so, VIX and its derivatives may be under attack by the algos. That suggests another low in the VIX derivatives before the change in trend.
Today is the Pi date for VXX and VIX. This may mean a final push lower from which the reversal may be made.
Alternatively, it may also mean a final breakout above the downtrend line, which may have already happened yesterday in the VIX.
Who ever said this was easy?
Regards,Tony
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