Click On Charts To Enlarge:- Charts on this blog include - Cyrptos - Stocks - Forex - Market Indices - Commodities - Bonds

Sunday, January 24, 2016

Risk-on but for how long?


It's been a very busy weekend for me but I wanted to just put a few charts up to see how we washed up for the week. We did get the rebound to end the week as I had expected. Where the top of this rally comes in is going to be very important now.

The SPX daily shows what I call an island bottom. A gap down then a gap up which can be quite a strong bottom reversal pattern. This was mainly caused by news from central banks about more quatatative measures to come. There is nothing like it to cuase a short squeeze. This is what I have been saying. We have never had this level of interevention in the markets before when we have witnessed a major top reversal like the one we are seeing now. Just have to take it as it comes.


VIX daily rejected off the resistance as I was expecting.


JNK high yield credit got a bounce in on Friday. Now I see if it gets back above the 15 day MA.


TNX has reobounded as bonds sold off to end the week and money moves into oversold names in stocks.




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