MomentumOptionsTrading.com Morning Update for 6/16/14
Big Week for Both Bulls and Bears
The market continued its winning ways to start the week as the bulls pushed towards fresh all-time highs. The Dow came within 30 points of triggering 17,000 while the S&P 500 reached an all-time intraday peak of 1,955.55.
Tuesday’s sloppy action favored the bears for much of the session before the bulls made a late day run to get the split.
Wednesday’s action was dominated by the bears as they snapped a 5-session skid while the VIX closed above 11.50. It would prove to be a warning sign.
The bulls were defenseless on Thursday as they tried to hold fresh support that served as prior resistance but gave back more ground. The bears won their second-straight session for the first time since mid-May as they made a push towards the second levels of support. The VIX closed right at 12.50 and left no clues as to how Friday’s action would play out.
Needless to say, Friday was an important day for both sides as the battle over support and resistance would be important going into the weekend. (read more…)