Market participants at a standoff awaiting directional resolution of a defined explosive technical pattern. Resolution will determine the direction of the next durable trend.
The broad equity markets (as represented by SPX) are at an important inflection point with an explosive contracted volatility pattern awaiting resolution. “Diamond” patterns portend extended price moves either higher or lower. Normally resolution is in the direction of the prevailing trend but with most indices at multiyear or historic highs and overdue for a […]
April 30, 2014: SPX tentatively captures overhead resistance, but follow thru higher is required to confirm.
SPX captures a daily descending trendline but the jury is remains out awaiting the outcome of Friday’s Non-Farm Payroll report. Caution is advised or Thursday trading as prices more will be more random (up/down) and swift as participants jungle positions ahead of Friday’s volatility events.
Points of Reference: Daily $SPX 2.0 Volatility Band Lower Support is1545.86 & Weekly 1.0 VB Support is 1535.62
Weekly $SPX Volatility Band 1.0 Support is at 1543.36 & Lower 2.0 Daily VB Support at 1545.20. Both are confluent & inflection points today