S&P And NASDAQ Lose March Channels
Alan Bradley | Mar 26, 2015 01:31AM ET
The selling began accelerating in the market yesterday as the indices followed through on slipping out of the March uphill green line channels from Tuesday. Looking at the charts below, it is easy to see that the NASDAQ is in a lot better shape than the S&P 500 as it is likely to catch support in its pink channel on Thursday. However, the S&P won't catch support on the lower line of its pink channel until it is nearly down to the lower line of its long-term blue channel line.
Taking a look next at the VIX and iPath S&P 500 VIX Short-Term Futures ETN (ARCA:VXX) charts below, we see a fairly sizable reactionary move in the VIX, but comparing it to the not so volatile move in the VXX, it looks as though traders are still convinced that Yellen's SPY and QQQ buying algorithms will save the day shortly as they always have.
I'm not sure that it is a good assumption, believing that Yellen will never, ever let this market have a substantial correction.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.