Pretty Much All Indices Have Rallied Hard, And Are Entering Resistance Levels

The markets have put on a huge rally lately.

With correlations at extremely high levels, pretty much all indices have rallied hard, and now start entering the resistance levels.

With short interest at elevated levels, we won’t be surprised if the markets tops out with a false and volatile break to the upside, in an inverted shake out of shorts, before the leg down resumes.

For great reading on volatility, check last week’s post from Artemis Capital Management.

Some charts resemble very much the last nasty sell off in 2008.

What many forget, is that actually many indices are rather flat compared to mid August levels.

We have been building up dynamics for a big move, that should start occurring soon.

Full Chartology below.

SPX

TheTrader Charts

 

NDX.

TheTrader Charts

 

Stoxx 50.

TheTrader Charts

 

DAX.

TheTrader Charts

 

MIB.

TheTrader Charts

 

IBEX.

TheTrader Charts

 

Athens.

TheTrader Charts

 

EUR/USD.

TheTrader Charts

 

Gold

TheTrader Charts

 

VIX

TheTrader Charts

This post originally appeared in The Trader.

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