Sunday, November 23, 2008

Was the market bottom on friday?

I last updated a chart of the DJIA related to the VIX and the targets were hit - 9500 on the DJIA and the 50 support on the VIX. From there we saw some more volatility to the downside, but things have shifted once again. Look at the stochastic bouncing on the topside of the downward trendline from before. The VIX ROC is falling and the stochastic is crossing its %D negatively. And if we look at the ADX, the attempt at a breakout has not been confirmed with the ADX which made a lower divergence. Also, look at the volume - it is entering a new phase and produced one of the most powerful volume days yet! As for the bottom? - Only time can tell now.

No comments: