Iraqi Issue still weighs heavily

[talles]

Iraqi Issue still weighs heavily

Iraqi Issue still weighs heavily
The Iraqi issue still wighs heavily on the market. shortly after the Iraq announcement mid-day that it would pro-actively cooperate with inspectors, we got a big rally, erasing all of the day's losses. yesterday's rally stalled at Dow 8158 and that still qualifies as a failed rally below the head and shoulders breakdown level at: 8200 that Vtrader talked about during the last week. Watch how volatile and reactive the market is: We took out both Monday's low, and then made it all up and took out Tuesday's high. Chart attached, talles

 

[talles]

SOX

Iraqi Issue still weighs heavily
The Iraqi issue still wighs heavily on the market. shortly after the Iraq announcement mid-day that it would pro-actively cooperate with inspectors, we got a big rally, erasing all of the day's losses. yesterday's rally stalled at Dow 8158 and that still qualifies as a failed rally below the head and shoulders breakdown level at: 8200 that Vtrader talked about during the last week. Watch how volatile and reactive the market is: We took out both Monday's low, and then made it all up and took out Tuesday's high. Chart attached, talles

SOX
The Semiconductor Index (SOX) also broke out from its range of the past few days, bouncing off support that it appeared on the verge of breaking. The 280 support level was broken on a closing basis, but just barely, on Monday. The chip stocks have since found buyers, forming a small saucer bottom and look intent on testing prior resistance at 300. Part of the reason behind the move was an upgrade to chipmaker Applied Materials (AMAT) +3.3%, which was upped from neutral to buy at UBS Warburg. The SOX finished the day up at 290, but it will take a decisive move back above 300 to signal a trend reversal. talles

 

[talles]

and last , but not the last ../images/Emo8.gif VIX

SOX
The Semiconductor Index (SOX) also broke out from its range of the past few days, bouncing off support that it appeared on the verge of breaking. The 280 support level was broken on a closing basis, but just barely, on Monday. The chip stocks have since found buyers, forming a small saucer bottom and look intent on testing prior resistance at 300. Part of the reason behind the move was an upgrade to chipmaker Applied Materials (AMAT) +3.3%, which was upped from neutral to buy at UBS Warburg. The SOX finished the day up at 290, but it will take a decisive move back above 300 to signal a trend reversal. talles

and last , but not the last

VIX
The Market Volatility Index (VIX), which has mirrored the range bound activity of the broader markets, but broken out as they broke down, is also on the verge of pulling back below the previous resistance line. That line could now serve as support, reflecting continuing fears for more downside. If we are truly ready for a bounce, it is likely we will see the VIX move back below 35%, as the fear abates. So far, however, we are holding above that level, even on Tuesday's bounce and Wednesday's intraday recovery from the big drop. Because the OEX is heavily traded, it generally takes quite a bit of order flow to move the VIX and reflects the activity of large institutions. If the VIX reflects more fear than the "big boys" feel there needs to be, then we see the VIX drop, even if the market does not move significantly higher that day. It almost always drops on big moves to the upside as institutions reduce the cost of long positions by selling out of the money premiums. However, if it drops to the point where it looks "cheap", compared to current market risk levels, then we also see support. By holding above the 35 level, which at one point institutions were willing to sell, it tells us that the big players still have downside concerns. Today's close at 35.22 is still above that mark, - although just barely. - as I said regarding the other factors in the market, the VIX is also on verge Chart attached talles

 

[astral travel]

ניתוחים לעניין תאלס

and last , but not the last

VIX
The Market Volatility Index (VIX), which has mirrored the range bound activity of the broader markets, but broken out as they broke down, is also on the verge of pulling back below the previous resistance line. That line could now serve as support, reflecting continuing fears for more downside. If we are truly ready for a bounce, it is likely we will see the VIX move back below 35%, as the fear abates. So far, however, we are holding above that level, even on Tuesday's bounce and Wednesday's intraday recovery from the big drop. Because the OEX is heavily traded, it generally takes quite a bit of order flow to move the VIX and reflects the activity of large institutions. If the VIX reflects more fear than the "big boys" feel there needs to be, then we see the VIX drop, even if the market does not move significantly higher that day. It almost always drops on big moves to the upside as institutions reduce the cost of long positions by selling out of the money premiums. However, if it drops to the point where it looks "cheap", compared to current market risk levels, then we also see support. By holding above the 35 level, which at one point institutions were willing to sell, it tells us that the big players still have downside concerns. Today's close at 35.22 is still above that mark, - although just barely. - as I said regarding the other factors in the market, the VIX is also on verge Chart attached talles

ניתוחים לעניין תאלס