The Beginning of the End? - S&P 500 TA 8/6/2022

At last, the market takes a pause from the current uptrend. This might be the beginning of the end for the current uptrend.

Inflation-related economic data is coming out next week, which could be the catalyst for a large move next week.

The market sentiment is so bullish that it is difficult to say how far back it might fall at this point.

VIX Related Indices

The Percentile Rank (PR) of “VIX / VIX Related Index” ratios continued to decline as the market continued to move up.

The Percentile Rank (PR) of VIX indices are all below 40%.

While these indicate the market continues to pare its hedge, they are still close to 50% PR so a large single-day jump is still possible to happen.

In case you are interested, here is more information about why it’s a good idea to monitor these VIX indices.

The VIX table for these calculations is now automated and available here.

VIX Ratio

VIX Indices

S&P 500 Technical Analysis

SPX is hanging around below the 200-day Moving Average and within the prior consolidation area (the white box).

The pause that took place on Friday now placed SPX right on the steeper uptrend line #2 (yellow line). It will be interesting to see if SPX will break the trendline on Monday.

There are still multiple support levels in place to watch even if SPX breaches uptrend line #2.

Uptrend line #1 that is originated from the June low.
50-day Moving Average and 25-day Moving Average.

Inflation-related economic data is coming out next week, which could be the catalyst for a large move next week.

https://www.marketwatch.com/economy-politics/calendar

Author
Recent Posts

Tony

I have been trading options since 2010 and have been testing and experimenting with various trading styles. Fundamental Analysis based, Technical Analysis based, Trend Following, Day Trading, Swing Trading, etc.

My primary option trading strategies incorporate volatility and I am constantly experimenting with various trading strategies to improve my PNL.

I hold two Master’s degrees (MSc and MBA) with career experience as a cancer research scientist and a digital marketer.