Another bumpy day, not that I'm complaining...I find it easier to trade such days than those with dow opening gapped up/down and never retracing properly...the whole point was about spotting the reversal and we already had some levels to watch, marked on the previous charts which helped to call the vix topped in the chatroom, the sharp vix fall and dow rise followed immediately afterwards...
VIX opened gapped up, immediately jumping to 35.58 (+1.30) where it topped and kept falling, ending the day down -1.60 at 32.68... worth to note that the top was also our trendline on the daily chart and settling above it would be very bullish for vix and bearish for the market... it failed to break it and kept falling from there on even breaching and closing below the bottom line of the upchannel on the 60min chart... this line may prove significant on the next session too.. to name a level our level of 33 mentioned in previous posts worth to watch as resistance, failing to break and settle above it may pull vix back down to our level of 30...
DOW of course the other way round opened gapped down immediately taking 8600 support level and hitting 8502 where it sharply bounced and soon took the 8600 level back, it then consolidated around this level before resuming the uptrend which failed at 8679, worth to make a note of this level as it is now a horizontal resistance level on the 15min chart...
Dow then backtested 8600 twice when this level proved strong support on both occasions pushing dow up to close up +22 at 8645..
In the mean time Dow formed a wider downchannel on the 15min chart and closed right above the upper line of this channel...
So where from here? Of course if we could get the answer to this question right at least half the times we'd be very rich by now
![Smile :) :)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
then again we can always guess and establish our support/resistance levels to watch while checking which way our indicators pointing...
Most of the levels worth to watch Monday already mentioned above, but over all it looks a case of 8600 as support and 8700 as resistance with the last candle on the daily chart biasing up a bit and VIX failing to settle above 35 and falling below 33 encouraging... that's of course if some significant w/e news dont come up...
But more important than all is to have a nice w/e away from the stressful market, so hoping you all do that, catch you next week
Riz