Market Diary

VIX is under 30 s and spider is above 106 (hold support) from here, expected move is UP and spider resistance could be 115.

SPX is holding the support.. This is the key support tested multiple time overtime. VIX today hit on 30 s and sellers came and brought VIX back to 33 s .

BP after the spill: Bankrupt, bought, or business as usual? From Fortune BP Broke the support !!!

BP pin point support today 32.19. There could be a bounce towards 39 level .

All the US Market indexes have resistance on 50 day moving average. US Dollar is the only one going UP..

Copper broke the support and going down, Gold is in a Cup and Handle pattern (a Bullish pattern) and S&P is in support. As of today this support is holding. As far as there are no reversal signs yet from copper market side, not only that it seems like very bullish sign in gold side as well, means market can go down to 950 level from here.

Market breadth indicator is showing upper lows when market closed lower today. This kind of divergence showed in March as well, when breadth made lower lows, market was making new highs. If breadth is not making new lows, we can see sudden change in market direction. Market is kind of "No Man's Land" area right now.

Summation index is over sold area and turning around in short term. When we look at the long term a down channel is forming from 2009 - June onwards.

A possible Head and Shoulder is forming in spider long term. If spider didn't break through 115 resistance ( Now spider is in 106), It could be a head and shoulder pattern (bearish). Note : This kind of pattern formed in 2009 summer, Market watchers saw, due to lack of volume in summer and long term bearish nature in the market, everybody expected, market will go down. pattern failure caused market rallied from 87 to 117. "Trade what you see " not your expectations..

Diamonds, Qs and Spider, all 3 markets are showing buy mode in hourly. Hourly linear regression channel showing up movement and price is in lower channel. Most probably we will get buy signal in all markets in the next week.

It seems like copper is in good support, Gold is in resistance and spider is also in support congestion area.. I think, in this point, market is reversing slowly to upside.

There are a valid Head and Shoulder in VIX and Inverse H&S in SPX. But ... In VIX there is a good support in 30 level. Sellers are showing their muscle when VIX get in 30 s. Buyers don't have enough reasons to buy. Probably market will be choppy in whole summer. "SELL IN MAY AND GO AWAY"