JUNE 20 INDEX UPDATE
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Short-term technical readings:
DOW - oversold region
SPX - lower midrange
OEX - lower midrange
NAZ - lower midrange
NDX - lower midrange
VIX - lower midrange(inverse to market)
Per my short-term technicals the overall market is in the lower midrange. What is interesting is that the VIX is now about 1-2 days from a CLASS BUY signal, which is a SELL SIGNAL for the indices, since it moves inversely to the market. Maybe its another hint that this short-term rally may be limited, and on the other hand it may just be an anomoly. Regardless, will continue to watch it and not ignore it.
Yesterday, the NAZ/NDX lost most of its intraday gains which many considered as being bearish, but per the CANDLESTICs it was actually a moderately BULLISH formation, something like the "MATCHING LOW". Today the NAZ/NDX closed up, so the MATCHING LOW worked, and we got another moderately bullish formation, the "PIERCING LINE". As mentioned previously, I am not expecting a strong rally, and with the PIERCING LINE there is a hint of a some more upside.
In light of the recent negativity in the market, I will start adding shorts once my short-term technicals get to the mid/upper-midrange, which should be in 1-2 days if the market continues up.
Im still holding onto that very small UOPIX(long-NDX) position in my mutual fund, which was originally part of a hedge. Im still 96.5% cash. |
