Friday, October 10, 2014

U.S. indices approaching some support

The U.S. stock market does not look good for bulls. But, apart from crashes, prices do not go down in just one move. It is rather quite a complicated structure.
Presently, after the initial fall, the market may find some suport. Let us look at the chart below:

VIX, which measures the stock market volatility, indicates the possible support. Since 2013, when VIX had been trading around 20 -22, the corrections were over. It is interesting whether this story will repeat these days. Well, looking at the charts of the main U.S. indices, with some of them breaking down their trend lines, I would expect only a minor correction up.

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