Thursday, December 11, 2008

Technical Picture - NR7 - Contraction Ahead of Expansion

SPX carved out NRIB (NR7) on lower volume which implies price/volume contraction ahead of expansion. Direction is not clear with the 50 DMA hovering over price. We are overbought. Keep a close eye on the VIX as it tests the lower side of the symmetrical triangle.



The $USD has weakened and gold/energy/commodities are bouncing.

3 comments:

Dinosaur Trader said...

Jamie,

I'm getting the feeling that we're gonna muddle around here for a while.

You?

-DT

TJ said...

DT,

It looks that way. I'd like to see us go back and fill the gap from 4 days ago and continue the uptrend from there. USD weakness today getting in the way.

Dinosaur Trader said...

Yup, muddy day thus far.

Let's see what happens at the end. Volume dead.

-DT