They broke down………
Posted by Cire2222 on May 22, 2008
if you refer to my post yesterday( http://tradersbase.com/daily-review/dow-breaks-trend-others-do-not/index.html ) I talked about a couple markets holding trend lines that should break down this week. Well they all broke except for the VIX. Dow broke down yesterday and today the S&P broke down and the transports broke down. To my suprise the VIX did break it’s down trend but did not close above it. This means to me that the fear is not baked into this market yet and we could have more room to fall. The markets should find a little support here as we approach the 50ema and a piror breakout level that has acted as support a couple times. I would like to get some charts up but it’s really late. So look for a little bounce or some chop but I do expect more selling.
Dow breaks trend, others do not
Posted by Cire2222 on May 20, 2008
Today we saw the Dow close below its uptrend line, Bearish signal. However the S&P and the dow transports (been a market leader)are still holding the uptrend and the VIX is still holding downtrend. What does this mean? Is the Dow leading the way down? I think that this market wants to break down and give us a little correction off this rally. If the S&P breaks back down through 1400 level I would expect the selling to continue. The fact that we broke past the 200MA and the 50%fib couldn’t hold is keeping me bearish right now.
