Tuesday, August 24, 2010

VIX and TRIN

The VIX finally moved but more importantly the TRIN is at 1.78 right now, typically 2= a close higher the next day. The TICK index is also seemingly confirming the positive reading in other indicators. We have resistance around $106.40 on the SPY. 3C is pretty much in line with price, there's a little lagging in two, the other is right on-they are not negative divergences. This suggests to me that they may be done accumulating, otherwise they'd be tying to knock the market back down to buy cheap. Don't forget, if you play this potential and in my opinion, likely bounce, chances are probably 50/50-depending on how strong the close is, that they may gap it down in the a.m. If the market closes strong, those chances diminish.

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