Technical Snapshot Key Takeaways
- The S&P, Nasdaq, and Dow all moved
higher on Wednesday, closing the session near their highs and within their
initial overhead resistance ranges. Conversely, the Russell broke
through its initial overhead resistance range and closed the session at
new all-time highs. The Daily trends on the S&P, Nasdaq, and Dow
tentatively remain lower (see notes below for potential termination and
continuation points), while the trend on the Russell was shifted higher.
Momentum readings across all indices are decelerating as price moves
higher, beginning to negatively diverge from price.
- The Volatility Index (VIX) finished
Wednesday's session lower, moving back into and closing just above its
initial downside support range from 15.75-15.30. If price continues lower
and breaks below 15.30, it will likely test the 14.70-14.12 support range
below. A move lower in the VIX would likely align with further buying
pressure in equities. Conversely, if price begins moving higher from
support, it will likely make its way toward the 21.35-20.40 resistance
range above, followed by 23.85-22.80. A move higher in the VIX would
likely coincide with renewed selling pressure in equities.
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