Market Condition: range bound, cautious. Levels to watch, DJIA 11577, SPX 1225, COMP 2652, VIX 30

Posted on September 17, 2011 by admin

Schaeffersresearch.com:

Chartadvisor.com:

Both websites are painting a similar picture: while the last week’s market movements is positive, the indexes are still within a trading range.  Most of these indexes are approaching the higher end of the trading range, making it vulnerable for a pullback.

VIX: vix has been showing lower highs and it closed below 31 last Friday.  The question is whether it will break below 30, a welcome trend for the bulls, or it will reverse, like in previous instances, to stay within the 31-4o channel.

My take: Market’s reaction to FOMC’s meeting on Wednesday is important to watch.  The market is expecting some stimulus from the Feds.  As the old adage goes, buy the rumor, sell the news.  When the Feds announce its decision, there may be a market sell off, in the backdrop of recent market advances.

Levels to watch:

SPX: 1225

Comp: 2652

DJIA: 11577

VIX: 30

About admin

Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
This entry was posted in Market Condition. Bookmark the permalink.

Leave a Reply