The one nagging question I have for now is the VIX and the fact that it is sitting near the lower part of the envelope I use against the 10 day ema. As you can see from the chart, we have upside risk to at least 12.79 and possibly 14 on some more extreme selling. The QQQQ gap from August is not closed yet, so keep an eye on 38 support. If that fails once again, we will see a move down to 37.70, or close. Watch NQ 10 day ema at 1551.75 for overnight futures support. For now, we seemed to have found reasonable ground, but play it tight.
Lots of data coming out this morning, including jobs, durable goods and new homes. Bonds seemed to have factored in some pretty bearish (bond bullish) news. We could have a surpise somewhere, which could lead to some equity relief. Lots of tug and pull as we work off some excesses in both bonds and equities.
This entry was posted
on Thursday, August 24, 2006 at 2:33 AM.
