Thursday, August 28, 2008

Summation Indices wobbly

The indices continued to undo Monday's sell off. The only watch points are the breakouts of declining wedges for volatility (VIX and VXN) as the parent indices test support.

The Nasdaq bounced off support, but the Summation Index is close to reversing the recent 'sell' trigger; so this will put things back on hold.

The NYSE Summation Index looked to be on the verge of a 'sell' trigger until Wednesday's advances pushed it higher. Watch how the consolidation triangle in the NYSE breaks

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website