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Crunch time for BULLS: move it up or lose it; watch the rallies & VIX/VXX


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#1 dTraderB

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Posted 05 June 2018 - 10:30 AM

I am not too impressed with the lack of momentum from the BULLS but am still not prepared to rule out  a rally to 2800 SPX and higher. 

This could merely be a quiet & boring consolidation after the recent rally but the market has to overcome significant 2750/60 SPX resistance during the next few hours or else the rally dies and the decline to below 2700 will begin. 

 

Watch the rallies: are they being sold quickly? Watch the adv & decl volumes, and very important for me is the behavior of VIX & VXX as the market goes up or down, using the patterns on a 1-minute chart of both SPX and VIX.  I look for contrary behavior: SPX up, VIX and VXX down or the inverse, or lack of enthusiasm for further declines in VIX and VXX as SPX rallies etc

 

My probable path is UP (already done), down (in progress), then several rally attempts with a quick decline into the close. However, I will not rule out a UP day & and big one. 



#2 dTraderB

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Posted 05 June 2018 - 02:00 PM

Nice rally from lows, now at SPX resistance zone.