Weekend Analysis

(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. 

 

 

 

 

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