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Tech and Small caps looking ready for the trigger

August 5, 2008
tags: , , ,

I got another alert today informing me of a fresh green arrow on the MA for each of the big three indexes as well as the midcaps. IWM has been above its 30 MA for two weeks already.       SELL! ha ha.

While the financials seem to be the big market driver these days as is apparent by the similarity between the XLF and the SPY, the QQQQ and IWM are showing relative strength over the intermediate term with higher lows, and in the short term with tighter consolidation just under resistance.

If the Financials and the SPX push above the clear resistance of late, it looks as though tech and small caps should outperform. That is, of course, assuming we DO get a decent rally here, even if still in the context of the longer term bear market.

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(click it to see it larger)

Following up on my reading of the VIX on Sunday, the 21 level was piecered during the day, but ultimately the VIX still closed in that range between 21 and 24. So I still read that as neutral.

Though I’m encouraged, when trying to be objective, I don’t see much reason to read anything differently than in Sunday’s Market Posture post. The SPX is still right at resistance. So despite the big jump today, it needs to move higher still to definitively turn the tides with a clearly higher high for a short term uptrend.

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One Comment leave one →
  1. Jim permalink
    August 6, 2008 12:27 pm

    The low on $VIX yesterday was 21.14. All the action below that was bad data.

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