EOD: VXX squeezed a few cents lower and breadth reversed intra-day and finished only slightly positive but broke lower on it's MACD below the daily 'red' signal parameter. The weekly breadth has been below the red signal parameter for 7 consecutive weeks and printed a total parameter sum of negative [-]251 today at the close. There is not much more room for VXX to move as it's historical 'x-over vector point' is now within only a few cents away from a reference point [statistically it sits right on top of it] that printed on 5/26/21 and is a key location for a potential medium size pullback into prices that printed in May '21 [SP-500 4196, VXX 35.90] . Let's see if a turn signal prints next week.
11:36am: Intra-day breadth reversal right on cue around 11:00am time slot [typical if it holds into the close]. Watching to see if it sets up a turn signal at the close. It is more likely to be a bump with a turn signal to materialize next week.
Original post-
Chart is ES futures. The concern is critical long-term vector alignments occurring as breadth MACD is declining together with volatility instruments. Historically this always creates a top in the market at various degrees. Given the advancing nature this could be a pending first leg down or just a pivot down-up. Odds are against a small top overall but it could begin that way. A turn signal [market down] is now required to print. Most likely next week. There is an early November +/- time frame topping target on the radar.
Note: VXX and VIX histograms are diverging positively from their prices. Breadth MACD has printed lower high #2 so one or two more lower highs likely to come until volatility instruments find their final levels [matching highs (ex.SVXY) vs lows (ex. VXX, VIX)]
Comment: McClellan Financial Publications has a very timely report.
The bots will flag here when they see a top. (1/25/20, 2/20/20)
This Information Is For Entertainment Purposes Only. Financial Loss Can Occur From Investing.
Our favorite go to site- McVerry Report
No comments:
Post a Comment