(10/11/14)
As mentioned last weekend the S&P 500 had been holding
support along its 25 Week EMA (green line) the past few years. However
this week the S&P 500 closed below its 25 Week EMA so the question is does
this signal a change in longer term direction for the S&P 500? Meanwhile the
Volatility Index (VIX) has surged back above the 20 level for the 5th time in
the past two years. Previous surges above the 20 level (points A) have
been followed by a bottom and then a higher high (points B to C). Thus
it's possible we could see a decent bounce develop next week however it remains
to be seen whether a higher high will eventually follow like previous
times.
Amateur Investors
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