Friday, October 17, 2008

Lovely bullish action

Good volume with long tail bullish patterns helped support the long tail day from last Friday. Best example is from small caps (another positive omen to see strength in this index). Note Fib retracement levels are unchanged from last week; given the correction off the 38% line I suspect we will see a break and push to the 61.8% zone which is conveniently located around the July lows and likely the 50-day MA.

In a recent Zignals blog article I talked about the trouble with gold; gold took a technical hit yesterday; breaking a sideways congestion and its 50-day MA:

Note the two distribution days in the GLD ETF (another tick in the negative column).

The VIX created it's second spike top. Now it needs to run to (and below) its neckline as I suggested yesterday:

There's a good 'feel' for a bottom here. Howard Lindzon has a more proactive approach based on the views of the dishevelled one.

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