VIX declined to make a double right shoulder to match the double left shoulder of a potential Head & Shoulders formation. The Moving Averages are so low that it may take a break of Long-term resistance at 10.93 to generate a buy signal. A breakout above the Ending Diagonal trendline suggests a complete retracement of the decline from January 2016, and possibly to August 2015. It appears that the Fed had its fingers on the scale all along, as many surmised.
(ZeroHedge) For years, market watchers and Fed skeptics had warned that the record low volatility "blanket" that has fallen like a pall over the comatose market was the result of Fed actions, both direct or indirect. And while they mostly spoke metaphorically (although back in 2012 we observed a distinct shift in the VIX futs when the current head of the Fed's trading desk, Simon Potter, replaced Brian Sack), we now have explicit confirmation that the Fed's "short vol" position appears to be rather literal.
S&P 500 Throws Over its trading channel.
SPX used its Cycle Top support at 2687.44 to throw over its Ending Diagonal formation.. A decline beneath its Cycle Top suggests the rally is over and profits should be taken. Should it break Intermediate-term support and the trendline at 2642.10, a sell signal may be generated. Should that happen, the decline may continue through the month of January.
(Reuters) - The S&P 500 and Nasdaq were on track to post their best weekly gain in more than a year on Friday, as U.S. stocks extended their new year rally even after December U.S. job growth came in weaker than expected.
The Dow and S&P 500 also were set to register their strongest start to a year since 2013.
U.S. stocks this week have been adding to momentum from last year driven by a series of strong economic reports from across the globe. The passage of a major U.S. tax overhaul last month helped to fuel late-year gains, and the S&P 500 ended 2017 up 19.4 percent.
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