Tuesday, August 18, 2009

$SPX,$SPXA50R & $VIX Chart

August 18, 2009 9:25 AM

A look at the Volatility Index ($VIX),$SPX, $SPXA50R, S&P500 stocks trading over their 50day moving average. Yesterday was a 90% day, percentage of stocks down, as I type the futures are pointing to a higher open in the indexes. Will they stay high into the close? It feels to me that this opening should be sold. I still this as a more significant pullback and will hold to that...how much needs to be seen? The line in the sand is the 950 level for the S&P500, a break below that level could see the July lows tested very quickly. The Volatility Index has been elevated and breaking higher, now it doesn't necessarily mean it will go lower...just great moves in either direction...but complacency has definitely given way to uncertainty of a sustainable recovery. We are entering September a historically bearish time for equities. I just heard Art Cashin discussing how the Baltic Dry Index ($BDI) should be monitored ...ahhh hello...what have I been saying lately? More later.....

*click on chart to expand image

No comments: