Category: General Market NewsSort
January Losses Don't Bode Well For Stock Market Bulls
So much for resistance. Both the S&P 500 and NASDAQ blew through resistance levels, including their respective 50 day moving averages. The DJIA was the laggard, unable to breach overhead resistance and the 50 dma.
The VIX also continued its decline. It closed below 40 again after spiking on January 20th and making a higher low. It is quickly coming down to touch its 200 dma at 36.28.
There are daily setups GALORE in banks, financials, and real estate, many more than usual. Unfortunately, most are in unstable situations with one or two dojis in the previous two days. Further, there are many rising wedges on decreasing volume, and some of these doji-pairs are near or at daily resistance points which could become inflection points if broken.