by Christopher Quigley
Financial Sense
[…] Technically Speaking:
The current rally which broke out on the 22nd of February is beginning to show signs of exhaustion. Of the major indices, the NASDAQ is the weakest. Price has already broken below the 200-day moving average (DMA) and a break below the 50 DMA could indicate that a short-term contraction is probably on the cards.
The VIX is very low and indicates that there is a very high degree of risk in the market, so I would not be chasing price action at the moment. I would wait for a break above the 18.58 level as this would show that the Volatility Index is moving outside its most recent trading range and that professional players are beginning to price in future market weakness.