It now appears as though the NASDAQ may be forming a mini H&S top with the left shoulder and head in place following Friday's action. Now we need a relief rally after all this selling to carve out the left shoulder. This is all speculative, but nevertheless a real possibility as price tests the trend line with a hammer reversal bar.
After ending last week at the lowest levels since seen since Oct, market volatility rose steadily this week as equities declined (S&P -3.4% on the week, Dow -3.8% on the week, Nasdaq comp -3.5% on the week). The VIX (CBOE Volatility Index) is up 20% from last Friday's close, now at 19.68, while the tech-focused VXN (CBOE Nasdaq Volatility Index) is up 21% on the week at 23.87. Expectations for near-term volatility in the market increased steadily over the course of the week, with equities reversing early in the week after failing to hold gains, oil prices setting new highs and the mid-week FOMC minutes adding to concerns about the economy.
No comments:
Post a Comment