SPX weekly chart
Now we finally breached the inverse head and shoulders neckline area, where are we going next? well from the trendline all the way from before the big drop in 2008, we can see the we might be looking at testing the 1200 area. Technical Indicators are looking very bullish on the weekly chart with 3 consecutive positive volume and SPX finally moved above the 50 day MA. RSI are trending upward nicely with no negative divergences, MACD finally moved above zero in almost 1 year and 7 month, ADX also showing some strength with positive DI line moving upwards.
Lets take a look at the VIX
15 min chart vix shows us some activity today in the options market. We opened lower today as the market moved higher due to the GDP news, and we really just consolidated in the mid range trying to move higher but the bulls just kept it there until late in the session where you can see a 2 green candlesticks showing big upward momentum and momentum breach of the resistance I drew, good thing it failed and we closed below the resistance. In my opinion, vix could stage some kind of run in the short term but bulls got nothing to worry about as long as it holds below this long term trend line.
