Market Review: SPY Might be Turning a Corner

If you look at today's price action you have to be encouraged there were alot of negatives floating around today that impacted the market especially at the beginning.  Most of it was related to the ISM manufacturing report that was 3 points off what analysts expected and so the market took a dump off of that news, but as the day went along the markets staged a very nice comeback.

What is encouraging about today is the fact that news came out that could have sunk the market but it didn't and that is very good news for the market.  Looking at the chart the SPY has not broken $140 since August first, infact we have had a number of retests that have held and that could prove a launching pad for the markets.



Something else that jumped out at me today were the VIX and the treasuries charts (TLT) both are counter indicators to the market and so if they are up the market is down and if the market is up these market indicators are down.  Anyway the VIX has popped up the last 2 weeks and traded into overbought territory and has hit the top of the Bollinger Band, and the Treasuries in the past 3 months when they formed harami's at the top of a Bollinger band with over bought stochastics the TLT reversed.
That's why I have a feeling that the market may make a surge up soon.



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