WELCOME

Welcome and thank you for visiting!

The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

N.B.
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...please read my full Disclaimer at this link.

Dots

* If the dots don't connect, gather more dots until they do...or, just follow the $$$...

Loyalty

Loyalty

ECONOMIC EVENTS

 UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...

***2024***
* Fri. April 5 @ 8:30 am ET - Employment Data
* Wed. April 10 @ 2:00 pm ET - FOMC Meeting Minutes
* Wed. April 17 @ 2:00 pm ET - Beige Book Report
* Wed. May 1 @ 2:00 pm ET - FOMC Rate Announcement + Forecasts and @ 2:30 pm ET - Fed Chair Press Conference

*** CLICK HERE for link to Economic Calendars for all upcoming events.

Thursday, June 29, 2017

Volatility Heats Up...Summer Selloff Ahead?

The following three ratio charts compare the strength of the NDX, RUT, and SPX with their respective Volatility Index.

The following NDX:VXN ratio chart shows that NDX is sitting in a precarious spot at a rising trendline, but well below what is now major resistance. All 3 technical indicators are still in "SELL" mode, as rising volatility outstrips price performance.


Compare that to where the RUT:RVX ratio is sitting...just above major support, but all three technical indicators are signalling weakness in the RUT, with the potential of rising volatility. We'll see if Small Caps get hit by sellers next.


Similarly, the SPX:VIX ratio is sitting just above major support, but all three technical indicators are signalling weakness in the SPX, also with the potential of rising volatility. We'll see how Large Cap stocks fare over the coming days/weeks.


Although volatility is much higher on the NDX at the moment (no doubt driven by the recent selling in the Tech FAANG stocks), it's still outperforming Small Cap and Large Cap stocks in percentages gained year-to-date, as shown on the comparison chart below. However, if it breaks and holds below the rising trendline mentioned above, we could see quite a selling domino effect occur in all equities.


The last chart grid shows that all five FAANG stocks are immersed in their respective consolidation zones, but have fallen to either their 50-day moving average or price support levels. If these break and hold below support, this could, indeed, confirm overall weakness in equities and begin a summer selloff in earnest.