Tuesday, March 29, 2016

Ponzo Updates for SPY, VIX and XLE...03.29.16

It was a dull, weak market and then FED chair Yellen chimed in with some dovish comments focused on the struggling job market and the markets took off with a vengeance. It was a low volume melt up and likely to have included a good percentage of short covering so the odds are for at least a modest pullback tomorrow and possibly Thursday and then a strong Friday close per yesterday's odds post..
There are a number of charts setting up double tops and that technical risk has to be considered.
Meanwhile, the SPY/VIX Ponzo updates are net bullish for now while the oil sector (XLE) forecast looks volatile with a short term neutral bias.