Chart Update-Sell off around the corner?
Many European indices have reached important resistance levels. The SPX is also at resistance levels, and managed putting on a very similar formation to last time it topped out. VIX is making a higher bottom. Time for these new smart bulls to feel the heat.
Let’s see how this trades 3-5% lower….Full Chartology below.
SPX. Note the candle formation and that steep wedge. Red line is the VIX.
Eurostoxx 50. Big wedge just hitting the negative trend line.
DAX has come a long way. Note how both the DAX and the Eurostoxx both trade at similar levels where we traded two weeks ago. That is not bullish…
VIX making a higher bottom.
The Trader has argued, now that Greece is “fixed” (and Fitch just downgraded it again), we need to move on. The most important factor regarding the last downgrade is whether the CDS will be triggered or not, the downgrade is actually just a technicality. Watch out for Spain, as the Med disease moves on.