Weekly charts are a valuable tool to understanding a more distant look into market comparisons. Then we can decide whether we are still in an up trending market or we have turned downward, based on the technical pattern. Below is a weekly chart of the S&P 500 Index.
Source: Shaw Investments, StockCharts.com
From the weekly chart above. The current correction low that we achieved yesterday, is above the correction low that was achieved in 2014, still creating an upward trend line, based on the weekly chart.
Source: Shaw Investments, StockCharts.com
The $VIX chart above has not seen high levels like this since 2011. Expect volatility in the near term, until the $VIX reading declines to more normal historical levels, which could take a few weeks.
Bottom Line: The S&P 500 Index above put in a correction reading (greater than -10% from peak), but remains above the 2014 correction low, creating an upward trending market. So we are in a long term bull market, and an intermediate term up trending market. The $VIX remains very high historically, so expect a whip lashing type market in the near term or until the $VIX declines to more historical average levels. Thank you for reading.
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