1/5/2014

Friday saw some very sideways trading occur with a negative close on the S&P, though not by much. Other indexes closed green. The shorter time frames such as the hourly and 30 minute charts on the S&P make the sideways action look like a continuation of of downward pressure, while the daily chart looks in mid-plunge toward 1810-ish.

Monday morning may see fast gains toward 1838 before it starts heading down again in the latter part of the day. If 1840 is passed, technically it could still bounce off of 1849.

I'm pretty bearish about the short term, and I think gains tomorrow still fit in with this outlook so long as the S&P remains below 1838. The bottom for tomorrow should be around 1820. You never know, of course, but we are creeping ever closer to the perceived 'top' of the big channel on the S&P.

Also, the VIX hourly appears to be bull flagging. Although. I'm not sure how relevant flags are on the VIX. It appears to act more like an oscillator.

S&P 500 30 Minute Chart

S&P 500 Daily Chart

VIX Hourly Chart